IPTF publishes document for discussion on hyperinflationary economies

Keywords: Mazars, Thailand, IFRS, IPTF, CAQ, SEC, IAS 29

25 March 2022

The document, dated 6 November 2021, has not been considered or acted upon by the SEC or the FASB (the US standard-setter). However, it is commonly considered to be a useful reference document for identifying hyperinflationary economies, particularly when applying IAS 29. The standard itself 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. Afghanistan, Ethiopia and Syria are omitted).

For more details, the IPTF discussion document is available here.