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Tuesday 28 June 2016

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Foreign currency translation

 Foreign Currency Translation

Project objective

The IASB to review IAS 21 The Effects of Changes in Foreign Exchange Rates and to assess whether the IASB should replace IAS 21 or undertake some narrower-scope improvements to IAS 21—including the accounting for long-term payables and receivables when a currency is thinly traded and volatile.

In October 2014, the IASB decided:

  • not to develop a narrow-scope amendment to IAS 21 that would apply when the currency is volatile and thinly traded;
  • not to pursue any of the other matters further; and
  • to reclassify the research project to longer-term in its Research Programme.

Project stages