Hyperinflationary economies - updated IPTF watch list available
04 Jul, 2023
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. While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.
The IPTF's discussion document for the 10 May 2023 meeting is now available and states the following view of the Task Force:
Countries with three-year cumulative inflation rates exceeding 100%:
- Argentina
- Ethiopia
- Haiti
- Iran
- Lebanon
- South Sudan
- Sudan
- Suriname
- Turkey
- Venezuela
- Zimbabwe
Countries with projected three-year cumulative inflation rates exceeding 100%:
- Ghana
- Sierra Leone
- Sri Lanka
Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:
- Yemen
Countries with recent three-year cumulative inflation rates exceeding 100% after a spike in inflation in a discrete period:
There are no countries in this category for this period.
Countries with projected three-year cumulative inflation rates between 70% and 100% or with a significant (25% or more) increase in inflation during the current period
- Angola
- Burundi (new entry)
- Egypt (new entry)
- Lao P.D.R (new entry)
- Malawi (new entry)
- Moldova
- Pakistan (new entry)
- Sao Tome and Principe (new entry)
- Ukraine
The IPTF 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 analysis as the necessary data is not available. Examples cited are Afghanistan and Syria.
The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force is available on the CAQ website.