Following a meeting on 18 May 2021, the International Practices Task Force (IPTF) of the Center for Audit Quality (CAQ), an independent body based in the United States, has recently published a new document identifying countries that are considered to have hyperinflationary economies.
Keywords: Mazars, Thailand, IFRS, IPTF, CAQ, IAS 29, Hyperinflationary economies
29 October 2021
It should be noted that the document has not been approved or ratified by any official accountancy or regulatory bodies (such as the FASB or SEC).
However, it is often considered to be a useful reference source for identifying hyperinflationary economies, particularly when applying IAS 29, which only provides a list of characteristics of a country’s economic environment that may indicate hyperinflation (notably the fact that the cumulative inflation rate over three years is approaching or exceeds 100%).
In this paper, the IPTF identifies the following countries as having a three-year cumulative inflation rate exceeding 100%: Argentina, Iran, Lebanon, South Sudan, Sudan, Venezuela and Zimbabwe.
However, the IPTF notes that the list is based on available data and does not claim to be exhaustive (e.g. Syria is omitted).
For more details, the IPTF document is available here.