Lack of Exchangeability - Amendments to IAS 21
Project Type:
Influencing
Status:
Completed
Milestone:
Final Documents
Completed Date: 21 September 2021
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.
Background
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:
- helping companies determine whether a currency is exchangeable into another currency;
- specifying the accounting requirements to apply when a currency lacks exchangeability; and
- requiring further disclosures.
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 was open for comment until 20 August 2021.
Timeline
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2
Final Documents
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The UKEB published its Final Comment Letter on 2 September 2021.
Final Comment Letter - Lack of Exchangeability - Amendments to IAS 21
The UKEB published its Feedback Statement on 21 September 2021.
Feedback Statement - Lack of Exchangeability - Amendments to IAS 21
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1
Consultation
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The UKEB published its Draft Comment Letter on 22 July 2021 for public consultation.
Draft Comment Letter - Lack of Exchangeability - Amendments to IAS 21
Invitation to Comment
Invitation to Comment - Lack of Exchangeability - Amendments to IAS 21
Invitation to Comment - Your details - Lack of Exchangeability -Amendments to IAS 21
The consultation closed on 20 August 2021.