Inflation and interest rates can be a significant source of estimation uncertainty and can have a material impact on the carrying amount of assets and liabilities. Whilst for a number of jurisdictions recent spikes in inflation and interest rates may now be stabilising or decreasing, entities may still be exposed to additional risks in this regard and may continue to need to update judgements and estimates, as well as related disclosures. Entities may also need to update sensitivity analysis to reflect a widening reasonable possible range for interest rate changes, and still need to consider the impact inflation and rates have had on their 31 March 2024 financial statements.

In depth INT2022-12 provides guidance on accounting for inflation and interest rates.