In April 2021, the International Accounting Standards Board (IASB) published the Exposure Draft Lack of Exchangeability. The Exposure draft proposes to add requirements to IAS 21 for an entity to determine whether a currency is exchangeable into another currency and the exchange rate to use when it is not.
The IASB discussed its proposed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates and tentatively decided:
All 12 IASB members agreed with these decisions.
The IASB tentatively decided to require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2025 and to permit earlier application.
All 12 IASB members agreed with this decision.
The IASB decided to finalise the amendments without re-exposure.
All 12 IASB members agreed with this decision.
No IASB member indicated an intention to dissent from issuing the amendments.
All 12 IASB members confirmed they were satisfied that the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments.
IFRS Accounting Standard Amendment
International Accounting Standards Board February 2023