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SIC-30 — Reporting Currency – Translation from Measurement Currency to Presentation Currency

References

  • IAS 21 The Effects of Changes in Foreign Exchange Rates
  • IAS 29 Financial Reporting in Hyperinflationary Economies

History

  • SIC D30 was issued July 2001
  • Final SIC-30 was approved by the IASB in December 2001.
  • Effective date: Annual financial periods beginning on or after 1 January 2002
  • Superseded by IAS 21 The Effects of Changes in Foreign Exchange Rates (Revised 2003), effective for annual periods beginning 1 January 2005.

Summary of SIC-30

SIC-30 addresses how an enterprise translates items in its financial statements from a measurement currency to a presentation currency. SIC-30 provides that when the measurement currency is not the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows:

  • assets and liabilities for all balance sheets presented (including comparatives) are translated at the closing rate existing at the date of each balance sheet presented
  • income and expense items are translated at the exchange rates existing at the dates of the transactions
  • equity items (other than the net profit or loss for the period that is included in retained earnings) are translated at the closing rate existing at the date of each balance sheet presented
  • all exchange differences resulting from translation should be recognised directly in equity.

When the measurement currency is the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows:

  • assets, liabilities, and equity items for all balance sheets presented (including comparatives) should be translated at the closing rate existing at the date of the most recent balance sheet presented
  • income and expense items for all periods presented should be translated at the closing rate existing at the end of the most recent period presented.

SIC-30 also addresses the information that should be disclosed when additional information not required by International Accounting Standards is displayed in financial statements and in a currency, other than the currency used in presenting the financial statements, as a convenience to certain users. An enterprise should:

  • clearly identify the information as supplementary information to distinguish it from the information required by International Accounting Standards and translated in accordance with the Interpretation
  • disclose the measurement currency used to prepare the financial statements and the method of translation used to determine the supplementary information displayed
  • disclose the fact that the measurement currency reflects the economic substance of the underlying events and circumstances of the enterprise and that the supplementary information is displayed in another currency for convenience purposes only
  • disclose the currency in which the supplementary information is displayed.

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.