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IFRS® Accounting Standards

AcSB Exposure Draft – Lack of Exchangeability (Proposed amendments to IAS 21)

Summary

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Phone number  +1 416 204 3270
Email address  [email protected]

Thank you for your interest in the AcSB Exposure Draft – Lack of Exchangeability (Proposed amendments to IAS 21). 

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AcSB Exposure Draft – Lack of Exchangeability (Proposed amendments to IAS 21)

Support Materials

Lack of Exchangeability (Amendments to IAS 21)

Background

The International Accounting Standards Board (IASB) recently issued the Exposure Draft, “Lack of Exchangeability (Amendments to IAS 21).” The Exposure Draft proposes to add requirements to IAS 21 to help companies determine whether a currency is exchangeable into another currency and the exchange rate to use if not. 

IAS 21 currently specifies the exchange rate to use in reporting foreign currency transactions when exchangeability between two currencies is temporarily lacking. However, the Standard does not specify what an entity is required to do when a lack of exchangeability is not temporary.

The IASB’s Exposure Draft includes illustrative examples and a Basis for Conclusions that are not part of the AcSB’s Exposure Draft. This material may be useful to stakeholders.