At its meeting on April 21-23, 2020, the IASB continued to discuss its proposed narrow-scope amendment to IAS 21 to address how an entity should determine the spot exchange to use when exchangeability between two currencies is lacking. The Board made a number of tentative decisions relating:

1. to an entity’s assessment of exchangeability;
2. to an entity’s estimation of the spot rate when a currency lacks exchangeability; and
3. disclosure requirements when a currency lacks exchangeability, including when a foreign operation’s functional currency lacks exchangeability.

The Board will discuss the proposed amendment’s effective date and transition, as well as the Board’s compliance with applicable due process steps at a future meeting.

Review the IASB Update and podcast on the Board's Web site.