Translation to a Hyperinflationary Presentation Currency (IAS 21)
Project Type:
Endorsement
Status:
Active
Milestone:
Final Documents
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.
The Amendments were approved for adoption by the UK Endorsement Board in September 2026. A link to the Adoption Statement of the Amendments and the text of the Amendments can be found on the 2026 list of UK Adoptions.
Background
The Amendments are a response to a submission to the IFRS Interpretations Committee and a related matter identified through IASB outreach.
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.
The IASB issued the Amendments in November 2025. 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.
The Amendments also make minor consequential changes to the mandatory parts of IFRS 19 Subsidiaries without Public Accountability: Disclosures and IAS 29 Financial Reporting in Hyperinflationary Economies.
Outreach
The UKEB outreach plan included discussions with stakeholders and public consultation on the UKEB’s [Draft] Endorsement Assessment Criteria ([Draft] ECA).
[Draft] Endorsement Criteria Assessment
On 27 April 2026, the UKEB published its [Draft] Endorsement Criteria Assessment of Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21). The public consultation period closed on 27 July 2026.
UKEB Meetings
UKEB Meetings
- 17 September 2026: Draft Adoption Package
- 23 April 2026: [Draft] Endorsement Criteria Assessment
- 26 February 2026: Project Initiation Plan
Timeline
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3
Final Documents
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The UKEB published its Endorsement Criteria Assessment and Feedback Statement on 30 September 2026.
ECA - Translation to a Hyperinflationary Presentation Currency (IAS 21)
Feedback Statement - Translation to a Hyperinflationary Presentation Currency (IAS 21)
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2
Consultation
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The UKEB published its [Draft] Endorsement Criteria Assessment on 27 April 2026 for public consultation.
[Draft] ECA - Translation to a Hyperinflationary Presentation Currency (IAS 21) (PDF) (View as HTML version)
Invitation to Comment
Invitation to Comment - Translation to a Hyperinflationary Presentation Currency (IAS 21)
The consultation closed on Monday 27 July 2026.
Stakeholder Responses
The UKEB received the responses below from stakeholders on its [Draft] Endorsement Criteria Assessment.
Response 1 - E.Beale (PDF) (View as HTML version)
Response 2 - PwC (PDF) (View as HTML version)
Response 3 - ICAEW (PDF) (View as HTML version)
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1
Initiation
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The UKEB published its Project Initiation Plan on 4 March 2026.
Project Initiation Plan - Translation to a Hyperinflationary Presentation Currency (IAS 21) (PDF) (View as HTML version)