This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IAS 21 — Foreign currency transactions and advance consideration

Background

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.