At its February 2024 meeting, the International Accounting Standards Board (IASB) discussed the disclosure and transition requirements for the proposed amendments to IAS 21 The Effects of Changes in Exchange Rates.
The IASB met on 19 March 2024 to discuss, in relation to the proposed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates:
The amendments relate to non-hyperinflationary entities with a presentation currency that is hyperinflationary.
For subsidiaries without public accountability (eligible subsidiaries) as defined in the prospective IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures, the IASB tentatively decided to propose that:
All 14 IASB members agreed with these decisions.
The IASB tentatively decided to propose that an eligible subsidiary that translates the results and financial position of a foreign operation that has a non-hyperinflationary functional currency into a hyperinflationary presentation currency be required to disclose summarised financial information about the results and financial position of that foreign operation.
Thirteen of 14 IASB members agreed with this decision.
The IASB set a 120-day comment period for the exposure draft.
All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft.
No IASB member indicated an intention to dissent from the proposals in the exposure draft.
Exposure Draft
International Accounting Standards Board March 2024