Lack of Exchangeability (Possible Amendments to IAS 21) [Completed]
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Effective date: |
An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact. The date of initial application is the beginning of the annual reporting period in which an entity first applies those amendments. |
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Last updated: |
November 2023 |
Overview
At its meeting in November 2019, the IASB discussed a recommendation from the IFRS Interpretations Committee (IFRIC) to undertake narrow-scope standard-setting on the spot exchange rate an entity uses when exchangeability between two currencies is lacking.
The Board also discussed the Committee’s recommendations regarding how to amend IAS 21, The Effects of Changes in Foreign Exchange Rates, in this regard. In particular, the Board discussed the IFRIC’s analysis and recommendations on how to:
- define exchangeability and, thus, a lack of exchangeability; and
- determine the spot exchange rate when exchangeability is lacking.
The Board agreed with the IFRIC’s recommendations and tentatively decided to undertake narrow-scope standard-setting on this matter.
On April 20, 2021, the IASB published an Exposure Draft, Lack of Exchangeability (Proposed amendments to IAS 21) that contains proposed guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Comments are requested by September 1, 2021. For further details refer to the related news item.
On August 15, 2023, the IASB published “Lack of Exchangeability (Amendments to IAS 21)” that contains guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.
On November 1, 2021, the AcSB issued the amendments to IAS 21, The effects of changes in foreign exchange rates, to Part I of the CPA Canada Handbook - Accounting.
Other developments
September 2023
The project has been removed from the work plan as final amendments were published in August 2023.
August 2023
On August 15, 2023, the IASB published “Lack of Exchangeability (Amendments to IAS 21)” that contains guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.
April 2023
On April 29, 2023, the IASB staff updated the work plan to indicate that the Board plans to issue the amendments to IAS 21 in July 2023.
January 2023
On January 30, 2023, the IASB staff updated the work plan to indicate that the IASB plans to issue the amendments to IAS 21 in the second half of 2023.
December 2022
On December 19, 2022, the IASB staff updated the work plan to indicate that the Board plans to issue the amendments to IAS 21 in the first half of 2023.
November 2022
On November 28, 2022, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in December 2022.
May 2022
On May 30, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction (no date specified).
April 2022
On April 29, 2022, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in July 2022.
October 2021
On October 29, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the feedback on the Exposure Draft at its meeting in January 2022.
September 2021
On September 27, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in Q1/2022.
July 2021
On July 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in Q4/2021.
May 2021
On May 18, 2021, the AcSB issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. The AcSB will not be submitting a response letter to the IASB Exposure Draft. However, this decision will be reviewed throughout the comment period and reconsidered based on stakeholder feedback. As a result, stakeholders are encouraged to reply to the AcSB prior to July 15, 2021 to support their ongoing discussions.
April 2021
On April 30, 2021, IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft Feedback in H2/2021.
On April 20, 2021, the IASB published an exposure draft Lack of Exchangeability (Proposed amendments to IAS 21) that contains proposed guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Comments are requested by September 1, 2021.
February 2021
On February 19, 2021, IASB staff updated the Work Plan to indicate that the Board plans to issue an Exposure Draft in April 2021.
January 2021
On January 29, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to issue an Exposure Draft in March 2021.
October 2020
On October 30, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue an Exposure Draft in Q1/2021.
January 2020
On January 31, 2020, the IASB staff updated the Work Plan to indicate that the IASB expects to issue an Exposure Draft in respect of this project (no date specified).
November 2019
At its meeting on November 20, 2019, the IASB added this project to its work plan.