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IAS 21 — Foreign currency transactions and advance consideration


The IFRS Interpretations Committee observed some diversity in practice regarding the exchange rate used when reporting transactions that are denominated in a foreign currency in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates in circumstances in which consideration is received or paid in advance of the recognition of the related asset, expense or income. As a consequence, the Interpretations Committee decided to develop an interpretation.


Current status of the project

This project has been completed. The IASB issued IFRIC 22 Foreign Currency Transactions and Advance Consideration on 8 December 2016.


Project milestones

Date Development Comments
November 2014 Added to the Interpretations Committee's agenda
21 October 2015
DI/2015/2 Foreign Currency Transactions and Advance Consideration published
Comments requested by 19 January 2016
8 December 2016
IFRIC 22 Foreign Currency Transactions and Advance Consideration issued
effective for annual reporting periods beginning on or after 1 January 2018


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.