4 Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

17 September 2026 Agenda Paper 4

OFFICIAL - PUBLIC

Executive Summary

Project Type: Endorsement Project

Project Scope: Limited

Purpose of the paper

The purpose of this paper is to:

• Request the Board’s approval of the individual documents included in the adoption package for the project to assess Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) (‘the Amendments’). The adoption package comprises the:
  • [Draft] Endorsement Criteria Assessment;
  • [Draft] Feedback Statement;
  • [Draft] Due Process Compliance Statement;
  • [Draft] Adoption Statement for the Amendments; and
  • [Draft] Annex to the Adoption Statement: Text of the UK-adopted international accounting standard (Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)).
• Ask the Board to provide a tentative vote on the adoption of the Amendments.

Summary of the Issue

In April 2026, the UKEB published the [Draft] Endorsement Criteria Assessment (ECA) of the Amendments that tentatively concluded the Amendments meet the adoption criteria set out in legislation¹. The Amendments make minor consequential changes to the mandatory parts of *IFRS 19 Subsidiaries without Public Accountability: Disclosures

• and IAS 29 Financial Reporting in Hyperinflationary Economies:

• IFRS 19 has been amended to require eligible subsidiaries to disclose the same information as that which would be required of other entities applying IFRS Accounting Standards (that is, the IASB did not reduce the disclosure requirements for an eligible subsidiary).

• Two paragraphs of IAS 29 have been amended to update the cross-references to IAS 21.

The amendments have been assessed within a single overarching [Draft] ECA.

Feedback

The consultation on the [Draft] ECA closed on 27 July

1. The UKEB received five formal responses to the consultation; all five responses were published on the project page on the UKEB’s website². All respondents are supportive of the adoption of the Amendments.

The majority of the respondents to the [Draft] ECA concurred with the UKEB’s assessment based on the adoption criteria in paragraph 1 of Regulation 7 of SI 2019/685.

One respondent disagreed with the Technical Accounting Criteria Assessment on the grounds that, for an individual entity with the functional currency of a non-hyperinflationary economy, information presented in the currency of a hyperinflationary economy would not faithfully represent the underlying economics of the individual entity.

A summary of the feedback received is in the [Draft] Feedback Statement.

Changes to the [Draft] ECA

In response to feedback on the Technical Accounting Criteria Assessment, the [Draft] ECA has been amended to remove a reference to the representation of underlying economics. The conclusion reached in this section of the [Draft] ECA remains unchanged.

Other amendments to the [Draft] ECA have been made as follows:

• Paragraphs 1 and 5 of the [Draft] ECA have been amended to ensure correct presentation of the title of the Amendments.
• Paragraph 5 of the [Draft] ECA has been amended to clarify that the amendments to IAS 29 are consequential.
• ‘Draft’ wording has been removed.

Adoption Statement for the Amendments

As the amendments to IFRS 19 and IAS 29 are consequential, a single [Draft] Adoption Statement for the Amendments has been produced. A footnote has been included in the [Draft] Adoption Statement for the Amendments to clarify that the adoption of the amendments includes the consequential amendments to IFRS 19 and IAS 29.

Voting

A tentative vote on the adoption of the Amendments will be held at this meeting. Voting forms for the formal written vote will be sent to Board members after the September 2026 meeting. The result of that formal vote, when completed, will be updated on the UKEB website, in line with the Board’s Terms of Reference.

Decisions for the Board

1. Subject to addressing any amendments required by the Board at this meeting, does the Board approve the documents in the adoption package? The adoption package comprises the:

1. \[Draft\] Endorsement Criteria Assessment;
2. \[Draft\] Feedback Statement;
3. \[Draft\] Due Process Compliance Statement;
4. \[Draft\] Adoption Statement for the Amendments; and
5. \[Draft\] Annex to the Adoption Statement: Text of the UK-adopted international accounting standard (*Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)*).

1. Does the Board tentatively approve the adoption of the Amendments for use in the UK?

Recommendation

The Secretariat recommends that the Board:

• approves the relevant documents in the adoption package; and
• tentatively approves the adoption of the Amendments for use in the UK.

Appendices

Appendix A [Draft] Endorsement Criteria Assessment
Appendix B [Draft] Feedback Statement
Appendix C [Draft] Due Process Compliance Statement
Appendix D [Draft] Adoption Statement for the Amendments
Appendix E [Draft] Annex to the Adoption Statement: Text of the UK-adopted international accounting standard (Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21))

Next steps

The written forms for the formal vote will be sent to Board members after the September 2026 meeting. The result of that formal vote, when completed, will be updated on the UKEB website in line with the Board’s Terms of Reference.

A final version of the Due Process Compliance Statement will be presented to the Board for noting in October 2026.

Timeline

The high-level timeline of this project, including key activities, milestones and proposed next steps, is as follows:

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DRAFT

OFFICIAL - PUBLIC

The UKEB does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it.

© 2026 All Rights Reserved

DRAFT FOR DISCUSSION

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Introduction

Purpose

1The purpose of this [Draft] Endorsement Criteria Assessment ([Draft] ECA) is to determine whether Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) (Amendments) issued by the International Accounting Standards Board (IASB) in November 2025 meet the UK’s statutory requirements for adoption as set out in Regulation 7 of Statutory Instrument 2019/685³ (SI 2019/685).

2The Amendments have an effective date of 1 January 2027 with earlier application permitted, subject to the UKEB adoption for use in the UK.

3The UKEB did not influence the development of the Amendments⁴ due to the extremely limited direct impact for UK companies. This approach was agreed in its Regulatory Strategy 2024/25⁵.

Background to the Amendments

4Table 1 in this [Draft] ECA provides a brief description of the Amendments.

Scope of the Adoption Assessment

5The Amendments make changes to the mandatory parts of IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 29 Financial Reporting in Hyperinflationary Economies [and consequentially to the mandatory parts of IFRS 19 Subsidiaries without Public Accountability: Disclosures⁶ and IAS 29 Financial Reporting in Hyperinflationary Economies]. These changes to the mandatory parts of the standards form part of the UKEB’s adoption assessment.

6As UK-adopted international accounting standards comprise only the mandatory⁷ sections of standards⁸, the amendments to the Basis for Conclusions of IAS 21 [and IFRS 19] are not adopted by the Board and are not considered in this [Draft] ECA.

Structure of the Assessment

7Tables 2-4 discusses how the Amendments meet the UK statutory requirements for adoption of new or amended international accounting standards described in Appendix B.

[Draft] Adoption Decision

8[On the basis of these assessments, the UKEB [tentatively] concludes that the Amendments meet the statutory endorsement criteria. The UKEB is therefore [tentatively] of the view that it will adopt the Amendments for use in the UK.]

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Description and Assessment of the Amendments

Description

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Do the Amendments lead to a significant change in accounting practice?

9The UKEB is required to assess whether or not the Amendments are likely to lead to a ‘significant change in accounting practice’ and therefore meet the criteria for a post-implementation review.

10The Amendments do not fundamentally change the requirements in IAS 21, IAS 29 [or IFRS 19], or introduce new principles. The Amendments merely clarify the translation requirements for an entity whose presentation currency is that of a hyperinflationary economy and either its own functional currency or that of its foreign operation is that of a non-hyperinflationary economy. The Amendments also complement these requirements with relevant disclosure requirements. In addition, the Amendments are considered to affect a minimal number of entities in the UK.

11As a result, the UKEB [tentatively] concludes that the Amendments are not likely to lead to a significant change in accounting practice and do not meet the criteria requiring a mandatory post-implementation review under Regulation 11 in SI 2019/685.

Appendix A: Glossary

Appendix B: UK statutory requirements for adoption

Introduction

B1This appendix sets out the UK statutory requirements for the adoption of new or amended international accounting standards, and the endorsement criteria assessment approach.

B2Paragraph 1 of Regulation 7 of SI 2019/685 requires that an international accounting standard only be adopted if:

1. the standard¹⁵ is not contrary to either of the following principles—
   1. an undertaking’s accounts must give a true and fair view of the undertaking’s assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

Approach to the endorsement criteria

B3This [Draft] ECA assesses the criteria above, in the following order:

1. Whether the Amendments meets the criteria of relevance, reliability, understandability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management (Regulation 7(1)(c)). We refer to these criteria collectively as the ‘technical accounting criteria’ (refer to Table 2).
2. Whether the Amendments are not contrary to the principle that an entity’s accounts must give a true and fair view (Regulation 7(1)(a)) (refer to Table 3).
3. Whether use of the Amendments is likely to be conducive to the long term public good in the UK (Regulation 7(1)(b)). Regulation 7(2) of SI 2019/685 includes specific areas to consider for this assessment (refer to Table 4). They are:
   1. whether the Amendments are likely to improve the quality of financial reporting;
   2. the costs and benefits that are likely to result from the use of the Amendments; and
   3. whether the Amendments are likely to have an adverse effect on the economy of the UK, including on economic growth.

Technical accounting criteria: Relevance, Reliability, Understandability and Comparability16

B4A description of the technical accounting criteria¹⁷ is provided below:

B5In conducting the overall assessment against the technical accounting criteria, the UKEB adopts an absolute, rather than a relative, approach. This is an absolute assessment against the criteria (do the Amendments provide information that is understandable, relevant, reliable and comparable?) rather than a relative one (do the Amendments provide information that is more or less understandable, relevant, reliable and comparable than current, or any other, accounting?). When an assessment of any individual aspect or requirement of the Amendments uses comparative language (e.g. ‘enhances comparability’), this does not mean that the objective is to reflect a real comparison in relative terms. Instead, the objective is to explain that any individual aspect or requirement of the Amendments has the potential to “enhance” one or more of the qualitative characteristics.

B6A separate comparative consideration of whether the Amendments are likely to enhance or maintain the quality of financial reporting is included within the UK long term public good assessment in Table 4.

True and fair view assessment18

B7The first adoption criterion, set out in Regulation 7(1) of SI 2019/685, states that an international accounting standard can only be adopted if:

“[….] the standard is not contrary to either of the following principles—

a) an undertaking’s accounts must give a true and fair view of the undertaking’s assets, liabilities, financial position and profit or loss; b) consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking; [….]”

B8For the sake of brevity, UKEB refers to the assessment against this endorsement criterion as ‘the true and fair view assessment’ and to the principles set out in Regulation 7(1)(a) as the ‘true and fair principle’. However, these abbreviated expressions do not imply that the assessment has considered anything other than the full terms of the endorsement criterion set out above.

B9The duty of the UKEB under Regulation 7(1)(a) is to determine generically, whether that standard is ‘not contrary’ to the true and fair principle. In other words, it is an ex-ante assessment. The UKEB has therefore considered whether the Amendments contain any requirements that would prevent accounts prepared using the Amendments from giving a true and fair view.

B10The approach is to determine whether the Amendments are not contrary to the true and fair principle in respect of any of the specific items identified in Regulation 7(1)(a) (namely, the assets, liabilities, financial position and profit or loss) in the context of the preparation of the accounts as a whole. A holistic approach has been taken to this assessment, considering the impact of the Amendments taken as a whole, including its interaction with other UK-adopted international accounting standards.

B11For the purposes of the assessment, the UKEB considers the requirement in paragraph 6A of IAS 8 Basis of Preparation of Financial Statements to ‘present fairly the financial position, financial performance and cash flows of an entity’¹⁹ to be equivalent to the Companies Act 2006 requirement for accounts to give a true and fair view.

B12This assessment is separate from the duty of directors under section 393(1) of the Companies Act 2006, which requires directors to be satisfied that a specific set of accounts gives a true and fair view of an undertaking’s or group’s assets, liabilities, financial position and profit or loss.

Do the Amendments lead to a Significant Change in Accounting Practice?

B13A standard adopted by the UKEB under Regulation 6 of SI 2019/685 that it considers is likely to lead to a ‘significant change in accounting practice’, is subject to the requirements in paragraph 3 of Regulation 11 of SI 2019/685. This requires the UKEB to:

(a) carry out a review of the impact of the adoption of the standard; and (b) publish a report setting out the conclusions of the review no later than 5 years after the date on which the standard takes effect (being the first day of the first financial year in respect of which it must be used)”.

B14Paragraphs 9–11 discusses whether the Amendments lead to a significant change in accounting practice.

Contact Us

UK Endorsement Board 1 Harbour Exchange

| London | E14 9GE www.endorsement-board.uk

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Feedback Statement: Translation to a Hyperinflationary Presentation Currency (ECA)

September 2026

The UK Endorsement Board (UKEB) is the UK National Standard Setter for IFRS, responsible for the endorsement and adoption of international accounting standards, for use in the UK. The UKEB also leads the UK’s engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.

Purpose of this Feedback Statement

This Feedback Statement presents the views of UK stakeholders received during the UKEB’s public consultation on the [Draft] Endorsement Criteria Assessment (ECA) of Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) (‘the Amendments’) and, where relevant, explains how the UKEB has addressed those views in the final ECA.

Description of the Amendments

The Amendments were issued by the IASB in November

1. A summary of the Amendments is presented below.

IAS 21 The Effects of Changes in Foreign Exchange Rates - Key changes

• The Amendments clarify that:
• Entities with a non-hyperinflationary functional currency and a hyperinflationary presentation currency are required to translate all amounts including comparatives at the closing rate.
• Entities with a hyperinflationary presentation currency and who translate the results and financial position of a foreign operation that has a non-hyperinflationary functional currency are required to restate the comparatives by applying paragraph 34 of IAS 29 Financial Reporting in Hyperinflationary Economies, i.e. general price index.
• The Amendments clarify the translation requirements for when the economy of the entity’s presentation currency ceases to be hyperinflationary.
• The Amendments complement the new requirements with relevant disclosure requirements.

Amendments to other IFRS Accounting Standards

• Consequential amendments were made to IFRS 19 Subsidiaries without Public Accountability: Disclosures.
• Consequential amendments were made to cross-references within IAS 29. The Amendments are effective for annual reporting periods beginning on or after 1 January

1. Earlier application is permitted.

An entity is required to apply the Amendments retrospectively in accordance with IAS 8 except in defined circumstances, where the Amendments specify the transition approach and certain disclosures.

An entity is not required to disclose the information that would otherwise be required by paragraph 28(f) of IAS 8 (or paragraph 187(f) of IFRS 19 if applying IFRS 9).

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1. Earlier application is permitted.

An entity is required to apply the Amendments retrospectively in accordance with IAS 8 except in defined circumstances, where the Amendments specify the transition approach and certain disclosures.

An entity is not required to disclose the information that would otherwise be required by paragraph 28(f) of IAS 8 (or paragraph 187(f) of IFRS 19 if applying IFRS 9).

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Stakeholder Outreach

Outreach activities following publication of the [Draft] ECA included:

• Consultation with two UKEB Advisory Groups: the Preparer Advisory Group and Accounting Firms and Institutes Advisory Group.
• Public consultation on the [Draft] ECA, which was published for consultation for 90 days, between 27 April 2026 and 27 July 2026.
• Promotion of the [Draft] ECA consultation through news alerts, LinkedIn posts and the UKEB website.

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UKEB Public Consultation on the [Draft] ECA

• Five formal responses from stakeholders were received.
• Stakeholder submissions received were published on the UKEB website.
• All stakeholder comments and views were considered in reaching the UKEB’s final assessment of the Amendments.

• The majority of the respondents to the [Draft] ECA concurred with the UKEB’s assessment based on the adoption criteria in paragraph 1 of Regulation 7 of SI 2019/685. All respondents are supportive of the adoption of the Amendments.
• One respondent disagreed with the UKEB’s tentative technical accounting criteria assessment (see below). No respondents disagreed with the UKEB’s other tentative assessments.

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Comments on the Technical Accounting Criteria Assessment

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Disclaimer

This Feedback Statement has been produced in order to set out the UKEB’s response to stakeholder comments received on the UKEB’s [Draft] Endorsement Criteria Assessment on the IASB’s Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) and should not be relied upon for any other purpose.

The views expressed in this Feedback Statement are those of the UK Endorsement Board at the point of publication.

Any sentiment or opinion expressed within this Feedback Statement will not necessarily bind the conclusions, decisions, endorsement or adoption of any new or amended IFRS by the UKEB.

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Contact Us

UK Endorsement Board 1 Victoria Street

| London | SW1H 0ET | United Kingdom www.endorsement-board.uk

UK Endorsement Board 1 Harbour Exchange

| London | E14 9GE www.endorsement-board.uk

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Appendix C: Translation to a Hyperinflationary Presentation Currency: [Draft] Due Process Compliance Statement

UKEB Board Meeting: 17 September 2026
Agenda Paper 4: Appendix C
OFFICIAL - PUBLIC
DRAFT FOR DISCUSSION

Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) (‘the Amendments’) was issued on 13 November 2025. The Amendments have an effective date of 1 January

1. Earlier application is permitted.

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Milestone: Project Initiation Plan (PIP) (mandatory) [Due Process Handbook (Handbook) 6.12–6.16, A1–A2]

PIP completed (including objective, timeline, milestones, outreach plan, resources, output and explanations for any change in consultation period or whether an advisory group is necessary) and approved at public meeting

• Complete: The PIP was approved at the 26 February 2026 Board meeting subject to further revisions.

Assessment of whether PIP required updating

• Complete: The PIP presented at the 26 February 2026 Board meeting was published on the UKEB webpage on 4 March 2026.
• Subsequent to the commencement of the project, no changes arose to its nature or scope. No updates to the PIP were necessary.

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Education Session/s (optional) [Handbook 4.10]

Board provided with Education session/s

• Complete: The Board was provided with an education session on 26 February 2026. The Board had an opportunity to ask questions to the Secretariat. This was a private session.

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Milestone: Desk-based Research (optional) [Handbook 6.17 and A3]

Review of relevant documentation

• Complete: The Secretariat has reviewed relevant documentation, including:
  • The IASB’s work on the Amendments (including staff papers, the Amendments including supporting materials).
  • The Basis for Conclusions to the Amendments.
  • Comment letters on the Exposure Draft received by the IASB from UK stakeholders.
  • Publications on the Amendments, e.g. accounting firm guides.
  • Other standard setters’ views.
  • The European Financial Reporting Advisory Group (EFRAG) endorsement advice to the European Commission.

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Milestone: Consult with a Representative Range of Stakeholders Prior to Adoption (mandatory) [Handbook 6.18–6.22 and A4–A8]

Evidence of consultation

• Complete: As described in Table 2 of the PIP, consultation activities were focused on:
  • Discussion with the following Advisory Groups²⁰:
    • Preparer Advisory Group (PAG) on [15 June 2026]; and
    • Accounting Firms and Institutes Advisory Group (AFIAG) on [9 June 2026].
  • Public consultation of the [Draft] Endorsement Criteria Assessment of Translation to a Hyperinflationary Presentation Currency ([Draft] ECA). The comment letters received were published on the UKEB website.

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Milestone: [Draft] ECA (mandatory) [Handbook 6.23–6.29]

The UKEB sets comment period for responses to [Draft] ECA

• Complete: The [Draft] ECA of the Amendments was published for consultation on 27 April 2026. It was open for comment for 90 days until 27 July 2026.

Review and approval at a UKEB public meeting

• Complete: The [Draft] ECA of the Amendments was reviewed and approved at the Board meeting on [23 April 2026].

[Draft] ECA published on website for public consultation

• Complete: The Secretariat published the approved [Draft] ECA of the Amendments on the UKEB website for a 90-day consultation period from 27 April 2026 to 27 July 2026.

Public responses to [Draft] ECA assessed and published on website

• Complete: The UKEB received five comment letters which were published on the UKEB website.
• [The Board discussed a summary of the feedback received on these at its meeting on [17 September 2026]. All responses were assessed, reflected as appropriate in the final ECA and summarised in the Feedback Statement.]

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Milestone: Project closure (mandatory) [Handbook 6.30–6.40]

Final Endorsement Criteria Assessment (ECA), Feedback Statement, Adoption Statement and Due Process Compliance Statement (DPCS) approved by the UKEB in public meeting

• [Complete: Drafts of the final ECA, Feedback Statement, Adoption Statement and DPCS were presented for approval to the Board at its [17 September 2026] public meeting. The Board approved the drafts of the final ECA, Feedback Statement and Adoption Statement subject to suggested amendments. A final DPCS was presented for noting at the Board’s [22 October 2026] meeting.]

Final ECA, Feedback Statement, Adoption Statement and DPCS published on the website

• [Complete: The final ECA, Feedback Statement and Adoption Statement were published on the UKEB website on [XX Month 2026]. A News Alert and a LinkedIn post were published on [XX Month 2026] to alert stakeholders to the endorsement and adoption of the Amendments. The final DPCS was published on the UKEB website after the [22 October 2026] Board meeting.]

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Milestone: Voting on adoption of the Amendments (mandatory) [Handbook 6.42–6.48]

Tentative vote

• [Complete: A tentative vote took place at the [17 September 2026] Board meeting based on the discussion of the Adoption Package, which included the drafts of final ECA, Feedback Statement, DPCS and Adoption Statement for the Amendments and the text of the UK-adopted international accounting standard Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21). The vote was indicative only.]

Evidence of written vote (in paper or electronic form)

• [Complete: The Adoption Statement and voting forms were sent to the Board for voting (accompanied by the text of the Amendments to be adopted) on [XX Month 2026] (written forms due by [XX Month 2026]). The vote was formalised by Board members signing the formal voting forms for the Standard.]

Outcome of the vote within 3 working days of the formal vote published on website

• [Complete: The announcement of the adoption of the Amendments was published on the UKEB website on [XX Month 2026].]

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Communications (mandatory) [Handbook 4.20–4.25]

Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting

• Complete: The UKEB’s meeting papers were published on the UKEB website 5 working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website.

Project webpage contains a project description with up-to-date project information

• Complete: The project webpage has been updated regularly on a timely basis.

Subscriber alerts

• Complete: Subscribers were alerted via email 5 working days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion.

News Alerts

• Complete: Two News Alerts were published on [27 April 2026] and [20 July 2026] calling for comments on the [Draft] ECA.
• LinkedIn posts for the [Draft] ECA were published on 27 April 2026 and 20 July 2026.
• [A News Alert announcing the adoption of the Amendments, along with links to the project page which includes publication of the final ECA and the Feedback Statement was published on [XX Month 2026].
• A LinkedIn post announcing the adoption of the Amendments was published on [XX Month 2026].]

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Conclusion

This project complies with the applicable due process steps, as set out in the December 2022 Handbook.

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Appendix D: Adoption Statement

Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

UKEB Board Meeting: 17 September 2026
Agenda Paper 4: Appendix D
OFFICIAL - PUBLIC
DRAFT

1 The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609²¹ (“the Delegating Regulations”) for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685²² (“the Regulations”).

2 The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the following amendments to international accounting standards published by the International Accounting Standards Board (IASB) for use within the United Kingdom:

1. Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)²³ (“the Standard”²⁴).

3 In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the Standard is not contrary to either of the following principles—
   1. an undertaking’s accounts must give a true and fair view of the undertaking’s assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the Standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the Standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

4 In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

5 The adopted Standard referred to in paragraph 2:

1. must be used for financial years beginning on or after 1 January 2027;
2. may be used for financial years beginning before 1 January 2027. An entity must disclose if it applies the Standard for an earlier period. The initial application date shall be the beginning of a reporting period.

6 The text of the Standard is set out in the annex to this statement.

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Approval by the UK Endorsement Board

Adoption of Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) published by the IASB in November 2025 was approved for adoption by XX members of the UK Endorsement Board.

DD Month 2026

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UK-Adopted International Accounting Standards

Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

Accounting Standards issued at 1 January 2026

UK-adopted international accounting standards contain copyright material of the IFRS® Foundation (Foundation) in respect of which all rights are reserved.

Reproduced and distributed by the UK Endorsement Board (“UKEB”), pursuant to the delegation by the Secretary of State in the International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609, with the permission of the Foundation within the United Kingdom only. No rights granted to third parties other than as permitted by the Terms of Use (see below) without the prior written permission of the UKEB, and the Foundation.

‘UK-adopted international accounting standards’ are issued by the UKEB in respect of their application in the United Kingdom and have not been prepared or endorsed by the International Accounting Standards Board.

Terms of Use for Users

1. The IFRS Foundation and the UK Endorsement Board (“UKEB”) (pursuant to the delegation by the Secretary of State in the International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609), grant users of the UK-adopted international accounting standards’ (Users) the permission to reproduce the ‘UK-adopted international accounting standards’ for
   1. the User’s Professional Use, or
   2. private study and education

   
   Professional Use: means use of ‘UK-adopted international accounting standards’ in the User’s professional capacity in connection with the business of providing accounting services for the purpose of application of IFRS as adopted by the UK for preparation of financial statements and/or financial statement analysis to the User’s clients or to the business in which the User is engaged as an accountant.
   
   For the avoidance of doubt, the abovementioned usage does not include any kind of activities that make (commercial) use of the ‘UK-adopted international accounting standards’ other than direct or indirect application of the ‘UK-adopted international accounting standards’ such as but not limited to commercial seminars, conferences, commercial training or similar events.

2. For any application that falls outside Professional Use, Users shall be obliged to contact the UKEB and the IFRS Foundation for a separate individual licence under terms and conditions to be mutually agreed.

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Accounting Standards issued at 1 January 2026

UK-adopted international accounting standards contain copyright material of the IFRS® Foundation (Foundation) in respect of which all rights are reserved.

Reproduced and distributed by the UK Endorsement Board (“UKEB”), pursuant to the delegation by the Secretary of State in the International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609, with the permission of the Foundation within the United Kingdom only. No rights granted to third parties other than as permitted by the Terms of Use (see below) without the prior written permission of the UKEB, and the Foundation.

‘UK-adopted international accounting standards’ are issued by the UKEB in respect of their application in the United Kingdom and have not been prepared or endorsed by the International Accounting Standards Board.

Terms of Use for Users

1 The IFRS Foundation and the UK Endorsement Board (“UKEB”) (pursuant to the delegation by the Secretary of State in the International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609), grant users of the UK-adopted international accounting standards’ (Users) the permission to reproduce the ‘UK-adopted international accounting standards’ for

1. the User’s Professional Use, or
2. private study and education

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Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates

Paragraphs 39, 42, 44, 47 and 55 are amended. Paragraphs 41A–41B, 47A, 53A–53B, 54A and 60O–60P are added. New text is underlined and deleted text is struck through.

Use of a presentation currency other than the functional currency

Translation to the presentation currency

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39 When an entity’s functional currency and presentation currency differ and are the currencies of non-hyperinflationary economies, the The results and financial position of the an entity whose functional currency is not the currency of a hyperinflationary economy shall be translated into the a different presentation currency using the following procedures:

1. assets and liabilities for each statement of financial position presented (ie including comparatives) shall be translated at the closing rate at the date of that statement of financial position;
2. income and expenses for each statement presenting profit or loss and other comprehensive income (ie including comparatives) shall be translated at exchange rates at the dates of the transactions; and
3. all resulting exchange differences shall be recognised in other comprehensive income.

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41A When an entity’s functional currency is the currency of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, the results and financial position of the entity shall be translated into the presentation currency by translating all amounts (ie assets, liabilities, equity items, income and expenses, including comparatives) at the closing rate at the date of the most recent statement of financial position. 41B When the economy whose currency is the entity’s presentation currency ceases to be hyperinflationary and the entity’s functional currency continues to be the currency of a non-hyperinflationary economy, the entity shall no longer apply paragraph 41A and instead apply paragraph 39. The entity shall do so prospectively from the beginning of the reporting period in which the economy ceases to be hyperinflationary—ie the entity shall not retranslate amounts that arose before the beginning of the reporting period. 42 When an entity’s functional currency and presentation currency differ and the entity’s functional currency is the currency of a hyperinflationary economy, the The results and financial position of the an entity whose functional currency is the currency of a hyperinflationary economy shall be translated into the a different presentation currency using the following procedures:

1. all amounts (ie assets, liabilities, equity items, income and expenses, including comparatives) shall be translated at the closing rate at the date of the most recent statement of financial position, except that
2. when amounts are translated into the currency of a non-hyperinflationary economy, comparative amounts shall be those that were presented as current year amounts in the relevant prior year financial statements (ie not adjusted for subsequent changes in the price level or subsequent changes in exchange rates).

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Translation of a foreign operation

44 Paragraphs 45–47A47, in addition to paragraphs 38–43, apply when the results and financial position of a foreign operation are translated into a presentation currency so that the foreign operation can be included in the financial statements of the reporting entity by consolidation or the equity method.

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47 Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation shall be treated as assets and liabilities of the foreign operation. Thus they shall be expressed in the functional currency of the foreign operation and shall be translated at the closing rate in accordance with paragraphs 39, 41A and 42.

47A When an entity’s functional currency and presentation currency are the currency of a hyperinflationary economy (or are the currencies of different hyperinflationary economies) and the entity translates the results and financial position of a foreign operation whose functional currency is that of a non-hyperinflationary economy, the entity shall not apply paragraph 41A to the comparative amounts of that foreign operation. Instead, the entity shall restate the comparative amounts of that foreign operation included in the entity’s previously issued financial statements by applying the general price index it applies to corresponding figures for the previous reporting period in accordance with paragraph 34 of IAS 29.

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Disclosure

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53A When an entity applies paragraph 41A to translate its results and financial position or the results and financial position of a foreign operation, the entity shall disclose the fact that all amounts (ie assets, liabilities, equity items, income and expenses and, if not applying paragraph 47A, comparatives) in its financial statements, or the results and financial position of its foreign operations, have been translated at the closing rate at the date of the most recent statement of financial position. 53B When an entity’s functional currency is that of a hyperinflationary economy, and that entity applies paragraphs 41A and 47A to translate the results and financial position of its foreign operations, the entity shall disclose summarised financial information about its foreign operations that enables users of financial statements to assess the effect of these foreign operations on the entity’s results and financial position. The entity shall label the comparative summarised financial information about its foreign operations to identify that the entity prepared the information by applying the general price index it applies to corresponding figures for the previous reporting period in accordance with paragraph 34 of IAS 29.

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54A When an entity applies paragraph 41B, the entity shall disclose the fact that its presentation currency has ceased to be the currency of a hyperinflationary economy. 55 When an entity presents its financial statements in a currency that is different from its functional currency, it shall describe the financial statements as complying with IFRSs only if they comply with all the requirements of IFRSs including the translation method set out in paragraphs 39, 41A, and 42 and 47A.

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Effective date and transition

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60O Translation to a Hyperinflationary Presentation Currency, issued in November 2025, added paragraphs 41A–41B, 47A, 53A–53B, 54A and 60P and amended paragraphs 39, 42, 44, 47 and 55. An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2027. Earlier application of the amendments is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact. 60P In applying Translation to a Hyperinflationary Presentation Currency:

1. an entity, whose functional currency and presentation currency are the currency of a hyperinflationary economy (or are the currencies of different hyperinflationary economies) and that translates the results and financial position of foreign operations whose functional currency is that of a non-hyperinflationary economy, shall:
   1. apply the amendments from the beginning of the annual reporting period in which it first applies the amendments;
   2. restate the comparative amounts of its foreign operations included in the entity’s previously issued financial statements by applying the general price index it applies to corresponding figures in accordance with paragraph 34 of IAS 29; and
   3. disclose comparative summarised financial information about its foreign operations and label such information to identify that the entity prepared the information by applying (ii).
2. except as specified in (a), an entity shall apply the amendments retrospectively in accordance with IAS 8; and
3. an entity is not required to disclose the information that would otherwise be required by paragraph 28(f) of IAS 8. Similarly, an entity that applies IFRS 19 Subsidiaries without Public Accountability: Disclosures is not required to disclose the information that would otherwise be required by paragraph 178(f) of IFRS 19.

Amendments to other IFRS Accounting Standards

IFRS 19 Subsidiaries without Public Accountability: Disclosures

Paragraphs 219A–219B, 220A and A4A are added. New text is underlined.

Disclosure requirements

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IAS 21 The Effects of Changes in Foreign Exchange Rates

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219A When an entity applies paragraph 41A of IAS 21 to translate its results and financial position or the results and financial position of a foreign operation, the entity shall disclose the fact that all amounts (ie assets, liabilities, equity items, income and expenses and, if not applying paragraph 47A of IAS 21, comparatives) in its financial statements, or the results and financial position of its foreign operations, have been translated at the closing rate at the date of the most recent statement of financial position. 219B When an entity’s functional currency is that of a hyperinflationary economy, and that entity applies paragraphs 41A and 47A of IAS 21 to translate the results and financial position of its foreign operations, the entity shall disclose summarised financial information about its foreign operations. The entity shall label the comparative summarised financial information about its foreign operations to identify that the entity prepared the information by applying the general price index it applies to corresponding figures for the previous reporting period in accordance with paragraph 34 of IAS 29.

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220A When an entity applies paragraph 41B of IAS 21, the entity shall disclose the fact that its presentation currency has ceased to be the currency of a hyperinflationary economy.

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Appendix A—Effective date and transition

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Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates

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A4A Translation to a Hyperinflationary Presentation Currency, issued in November 2025, amended IAS 21 The Effects of Changes in Foreign Exchange Rates and added paragraphs 219A–219B and 220A. The transition requirements for paragraphs 219A–219B and 220A are set out in paragraph 60P of IAS 21. An entity shall apply these amendments when it applies the amendments to IAS 21.

IAS 29 Financial Reporting in Hyperinflationary Economies

Paragraphs 8 and 34 are amended. New text is underlined and deleted text is struck through.

The restatement of financial statements

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8 The financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, shall be stated in terms of the measuring unit current at the end of the reporting period. The corresponding figures for the previous period required by IFRS 18 Presentation and Disclosure in Financial Statements and any information in respect of earlier periods shall also be stated in terms of the measuring unit current at the end of the reporting period. For the purpose of presenting comparative amounts in a different presentation currency, paragraphs 41A, 42(b), and 43 and 47A of IAS 21 The Effects of Changes in Foreign Exchange Rates apply.

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Corresponding figures

34 Corresponding figures for the previous reporting period, whether they were based on a historical cost approach or a current cost approach, are restated by applying a general price index so that the comparative financial statements are presented in terms of the measuring unit current at the end of the reporting period. Information that is disclosed in respect of earlier periods is also expressed in terms of the measuring unit current at the end of the reporting period. For the purpose of presenting comparative amounts in a different presentation currency, paragraphs 41A, 42(b), and 43 and 47A of IAS 21 apply.