Associated British Foods plc – Annual report – 13 September 2025
Industry: food and drink, retail
Material accounting policies (extract)
Hyperinflation
The Argentinian economy was designated hyperinflationary from 1 July 2018. The Turkish economy was designated hyperinflationary from 1 July 2022. The Malawian economy was designated as hyperinflationary from 31 December 2024.
The Group has applied IAS 29 Financial Reporting in Hyperinflationary Economies to its Argentinian operations from the beginning of the 2019 financial year, its Turkish operations from the beginning of the 2022 financial year and its Malawian operations from the beginning of the current financial year. IAS 29 requires that hyperinflationary adjustments are reflected from the start of the reporting period in which it is applied.
The adjustments required by IAS 29 are set out below:
- adjustment of historical cost non-monetary assets and liabilities from their date of initial recognition to the balance sheet date to reflect the changes in purchasing power of the currency caused by inflation, according to the official indices for Argentina published by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (‘FACPCE’); Turkey as published by Turkish Statistical Institute (‘TUIK’); and Malawi as published by the Malawian National Statistical Office (‘CPI’);
- adjustment of the components of the income statement and cash flow statement for the inflation index since their generation, with a balancing entry in the income statement and a reconciling item in the cash flow statement, respectively;
- adjustment of the income statement to reflect the impact of inflation on holding monetary assets and liabilities in local currency;
- the financial statements of the Group’s Argentinian, Turkish and Malawian operations have been translated into sterling at the closing exchange rate at 13 September 2025 (ARS 1966.66:£1; TRL 56.1:£1; MWK 2351.22:£1); and
- the cumulative impact corresponding to previous years has been reflected in other comprehensive income in the year.
In Argentina, the FACPCE index was 6883.4412 at 31 August 2024 and 9193.2441 at 31 August 2025. The inflation index for the year is therefore 1.336.
In Turkey, the TUIK index was 51.97 at 31 August 2024 and 32.95 at 31 August 2025. The inflation index for the year is therefore 0.634.
In Malawi, the CPI index was 193 at 31 August 2024 and 247.5 at 31 August 2025. The inflation index for the year is therefore 1.282.
The Venezuelan economy has been designated hyperinflationary for a number of years, but the impact on the Group’s results remains immaterial.
Consolidated cash flow statement (extract)
for the 52 weeks ended 13 September 2025
2. Operating costs (extract)
Accounts examples 