IAS 21 Exchange Rate for Re-measuring Foreign Currency Transactions and Translation of Foreign Operations under IAS 21

Date recorded:


The issue is which exchange rate an entity should use for remeasuring foreign currency transactions and translation of foreign operations if more than one exchange rate is available.


The IFRIC noted that paragraph 24 of IAS 21 The Effects of Changes in Foreign Exchange Rates (in the Exposure Draft of proposed Improvements to International Accounting Standards) states that “When several exchange rates are available, the rate to be used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date.”


Decision not to add

April 2003



The IFRIC agreed that the guidance in the improved IAS 21 is satisfactory and decided not to take the issue on to its agenda.


IFRIC reference: IAS 21

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