Hyperinflation and its Accounting and Tax Impact on Financial Statements and Disclosures in Zimbabwe, Argentina, Turkey and Egypt

This study examines the financial and tax implications of hyperinflation, analyzing its impact on companies and government policies. Hyperinflation is one of the most severe economic challenges facing emerging markets, leading to significant distortions in financial statements and tax systems. It is characterized by an excessive and rapid increase in price levels, resulting in the collapse of local currency value and creating substantial difficulties for both businesses and governments. This study explores the effects of hyperinflation on financial reporting, asset valuation, tax liabilities, and business decision-making. It highlights the challenges companies face in maintaining accurate financial records, managing cash flows, and complying with tax regulations in inflationary environments. Additionally, the study investigates how governments respond to hyperinflation, particularly concerning monetary policies and tax adjustments. Through case studies from Zimbabwe, Argentina, Turkey, and Egypt, between 2015 to 2024. The research provides practical insights into how businesses and policymakers adapt to hyperinflation.