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IFRIC 22 — Foreign Currency Transactions and Advance Consideration

Ef­fec­tive date:

Effective for annual reporting periods beginning on or after January 1, 2018. Earlier application is permitted.

Pub­lished by the IASB:

December 8, 2016

In­cluded in Part I of CPA Canada Hand­book:

March 2017


Issue and scope of the interpretation

The interpretation addresses foreign currency transactions or parts of transactions where: (i) there is consideration that is denominated or priced in a foreign currency; (ii) the entity recognizes a prepayment asset or a deferred income liability in respect of that consideration, in advance of the recognition of the related asset, expense or income; and (iii) the prepayment asset or deferred income liability is non-monetary.


The Interpretations Committee came to the following conclusion:

  • The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
  • If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.

His­tory of IFRIC 22

The fol­low­ing table shows the his­tory of this stan­dard sub­se­quent to the adop­tion of IFRS in Canada.




Included in Part I of the CPA Canada Handbook2

December 8, 2016

IFRIC 22, Foreign Currency Transactions and Advance Consideration, issued

This new in­ter­pre­ta­tion clar­i­fies the accounting for transactions that include the receipt or payment of advance consideration in a foreign currency.

IFRIC 22 is effective for annual reporting periods beginning on or after January 1, 2018. Earlier application is permitted.

March 2017


  1. For fur­ther de­tails of rel­e­vant de­vel­op­ments prior to this, please re­fer to our De­loitte Global sec­tion.
  2. Newly is­sued, amended or re­vised IFRSs are part of Cana­dian GAAP only af­ter they are ap­proved by the Ac­count­ing Stan­dards Board in ac­cor­dance with its due process.

The above sum­mary does not in­clude de­tails of con­se­quen­tial amend­ments made as the re­sult of other pro­jects.

Re­lated Stan­dards

Amend­ments un­der con­sid­er­a­tion

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.