Hyperinflationary economies - updated IPTF watch list available

  • CAQ (US Center for Audit Quality) (light green) Image

23 Aug, 2017

IAS 29 'Financial Reporting in Hyperinflationary Economies' defines and provides general guidance for assessing whether a particular jurisdiction's economy is hyperinflationary. But the IASB does not identify specific jurisdictions. The International Practices Task Force (IPTF) of the Centre for Audit Quality (CAQ) monitors the status of 'highly inflationary' countries. The Task Force's criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.

The IPTF's notes from the 16 May 2017 meeting are now available and state the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

  • South Sudan
  • Ukraine
  • Venezuela

Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:

  • Malawi
  • Sudan

Countries (a) with projected three-year cumulative inflation rates greater than 100%; (b) with projected three-year cumulative inflation rates between 70% and 100%; (c) where the last known three-year cumulative inflation rates previously exceeded 100% and current actual inflation data has not been obtained; or (d) with a significant increase in inflation during the current period

  • Argentina
  • Libya
  • Suriname
  • Angola
  • Yemen
  • Egypt
  • Mozambique

The report also notes that there may be additional countries with three-year cumulative inflation rates exceeding 100% or that should be monitored which are not included in the above analysis because the sources used to compile the list do not include inflation data for all countries or current inflation data. An example cited is Syria.

The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force are available on the CAQ website. We also offer an overview of the IPTF's assessment of hyperinflationary jurisdictions at the end of our summary of IAS 29.

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