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.

Planned outreach 

We welcome your views on the areas identified by the IASB. 

Our planned outreach on this project includes discussions with preparers and investors and a public consultation on our draft comment letter. 

If you would like to contribute to outreach work on this project, please email: 

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