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 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 ([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.
The UKEB plans to consider feedback received in the public consultation at its September 2026 meeting.
UKEB Meetings
UKEB Meetings
- 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 will be discussing its [Draft] Endorsement Criteria Assessment and Feedback Statement at a future UKEB public Board meeting.
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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)
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.
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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)