Deloitte comment letter on tentative agenda decision on IAS 21 — Determination of the exchange rate when there is a long-term lack of exchangeability

Published on: 21 Aug, 2018

We have commented on the IFRS Interpretations Committee's publication in the June 2018 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the determination of the exchange rate used to translate the results and financial position of a foreign operation when there is a long-term lack of exchangeability between the functional currency of the foreign operation and the reporting entity’s presentation currency.

We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision, although we believe that to address the facts that (as stated in the tentative agenda decision) economic conditions are constantly evolving and that different conditions exist in different jurisdictions this research should not focus solely on the current situation in Venezuela.

Download the full comment letter below.


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