Translation to a Hyperinflationary Presentation Currency (IAS 21)
Project Type:
Endorsement
Status:
Active
Effective Date: 1 January 2027
On 13 November 2025, the International Accounting Standards Board (IASB) issued Translation to a Hyperinflationary Presentation Currency, which amended IAS 21 The Effects of Changes in Foreign Exchange Rates. The Amendments will be effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted and subject to the UKEB endorsement and adoption in the UK.
Background
The Amendments are a response to a submission to the IFRS Interpretations Committee and a related matter identified through IASB outreach. The Amendments make changes to IAS 21 to set out the required accounting:
- Where an entity has a functional currency of a non-hyperinflationary economy and presents its financial statements in a currency of a hyperinflationary economy.
- Where an entity translates the results of a foreign operation that has a functional currency of a non-hyperinflationary economy into a presentation currency of a hyperinflationary economy.
In July 2024 the IASB published the exposure draft IASB/ED/2024/4 Translation to a Hyperinflationary Presentation Currency Proposed amendments to IAS 21 (ED). The UKEB did not respond to the ED due to lack of any direct impact for UK companies.
Outreach
The UKEB outreach plan includes discussion with stakeholders and public consultation on the UKEB’s Draft Endorsement Assessment Criteria (DECA).
UKEB Meetings
UKEB Meetings
- 26 February 2026: Draft Project Initiation Plan