IFRIC Interpretation 22 was published by the International Accounting Standards Board (IASB) in December 2016.  The objective of IFRIC 22 is to clarify how the date of the transaction should be assessed for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability arising from advance consideration in a foreign currency. 

EFRAG supports the adoption of the amendments and recommends their endorsement.  EFRAG’s initial assessment is that the amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.   

EFRAG also considers that the overall benefits of the amendments are likely to outweigh the associated costs to implement them. 

Comments are requested by 17 March 2017. 

EFRAG has also updated its endorsement status report to reflect the issuance of the draft endorsement advice. 

The EFRAG press release regarding this, including draft endorsement advice and the invitation to comment, are available on the EFRAG website.