Related Discussions

• Lack of Exchangeability – International Accounting Standards Board

• Feb 20, 2023

• At its meeting on February 20-23, 2023, the IASB discussed its proposed amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates, and tentatively decided: (i) to proceed with the proposed amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards; and (ii) not to make amendments to IFRS 13, Fair Value Measurement. The IASB tentatively decided to require an entity to apply the amendments for annual reporting periods beginning on or after January 1, 2025 and to permit earlier application. The IASB decided to finalize the amendments without re-exposure. No IASB member indicated an intention to dissent from issuing the amendments. All of the IASB members confirmed they were satisfied that the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments. The IASB expects to issue the amendments in the third quarter of 2023.

• Lack of Exchangeability – International Accounting Standards Board

• Dec 13, 2022

• At its meeting on December 13-15, 2022, the IASB met to discuss how the project should proceed, including related to the following issues: (a) assessing exchangeability between two currencies; (b) determining the spot exchange rate when exchangeability is lacking; and (c) disclosure and transition. Following its discussions, the IASB made tentative decisions with respect each of (a), (b) and (c). The IASB will discuss effective date and due process steps at a future meeting.

• Lack of Exchangeability – International Accounting Standards Board

• Jan 25, 2022

• At its meeting on January 25, 2022, the IASB met to discuss a summary of feedback on the Exposure Draft. The IASB was not asked to make any decisions. The IASB expects to decide the project direction in Q2/2022.

• Lack of Exchangeability – International Accounting Standards Board

• Jul 22, 2020

• At its meeting on July 22-23, 2020, the IASB discussed requirements for the transition to and early application of the proposed amendment to IAS 21. The Board tentatively decided (i) to propose that, if applicable, an entity would apply the amendment prospectively from the beginning of the annual reporting period in which it first applies the amendment (date of initial application) and not restate comparative information; (ii) to provide no specific exemption for a first-time adopter from the proposed amendment to IAS 21; and (iii) to permit an entity to apply the proposed amendment earlier than the effective date. All of the Board members confirmed they were satisfied the Board has complied with the applicable due process steps and that it has undertaken sufficient consultation and analysis to begin the balloting process for the exposure draft. No Board member indicated an intention to dissent from the proposals in the exposure draft. The Board plans to publish its exposure draft in due course.

• Lack of Exchangeability – International Accounting Standards Board

• Apr 21, 2020

• 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 (i) to an entity’s assessment of exchangeability; (ii) to an entity’s estimation of the spot rate when a currency lacks exchangeability; and (iii) 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.