Lack of Exchangeability —Amendments to IAS 21


In April 2021 the IASB published its Exposure Draft ED/2021/4 Lack of Exchangeability with proposed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates. 

The IASB’s comment deadline is 1 September 2021. 


IAS 21 sets out the exchange rate a company uses when it reports foreign currency transactions or a foreign operation’s results in a different currency. 

IAS 21 specifies the exchange rate to use in reporting foreign currency transactions when exchangeability between two currencies is temporarily lacking but does not specify what an entity is required to do when a lack of exchangeability is not temporary. 

The proposed amendments aim to improve the usefulness of the information by:

  1. helping companies determine whether a currency is exchangeable into another currency;
  2. specifying the accounting requirements to apply when a currency lacks exchangeability; and
  3. requiring further disclosures.

UK Endorsement Board outreach

The UKEB secretariat seeks input and feedback from UK stakeholders as the UKEB secretariat develops its response to the IASB’s Exposure Draft.

Our draft comment letter outlines our proposed response to the Exposure Draft and is open for comment until 20 August 2021. Please respond using the invitation to comment documents on this page and send your response to .