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As at December 31, 2023, there were thirteen countries around the world whose economies were considered hyperinflationary. Entities whose functional currency is the currency of one of these countries and that have December 31, 2023 reporting requirements have to reflect the requirements of IAS 29 Financial Reporting in Hyperinflationary Economies in their IFRS financial statements.
IFRIC decisions relating to hyperinflation
The IFRS Interpretations Committee (IFRIC) have previously considered a number of accounting issues in relation with hyperinflation. These include the following items:
- Translating a hyperinflationary foreign operation and presenting exchange differences;
- Accounting for cumulative exchange differences before a foreign operation becomes hyperinflationary;
- Presenting comparative amounts when a foreign operation first becomes hyperinflationary;
- Consolidation of a non-hyperinflationary subsidiary by a hyperinflationary parent.
We encourage careful consideration of these issues when preparing IFRS financial statements and applying IAS 29.
Linked documents.
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Download the document ifrs_adviser_alert_hyperinflation_countries_dec_31_2023_p
IFRS Adviser Alert | Hyperinflationary countries – Update for periods ending December 31, 2023