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IFRS® Accounting Standards

Translation to a Hyperinflationary Presentation Currency

Summary

The Accounting Standards Board (AcSB) participated in the International Accounting Standards Board’s (IASB) project to amend International Accounting Standard (IAS) 21 The Effects of Changes in Foreign Exchange Rates.

The amendments specify how to translate the results and financial position of an entity whose functional currency is non-hyperinflationary into a hyperinflationary presentation currency.

Staff Contact(s)

Andrew White, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3487
Email address  [email protected]

Project Status

  • Information gathering

    Completed before December 2023

  • Approving project

    The IASB added this project to its work plan in December 2023​

  • Engaging communities

    The IASB issued its Exposure Draft, “Translation to a Hyperinflationary Presentation Currency,” in July 2024

    The AcSB issued an Exposure Draft that corresponds to the IASB Exposure Draft

  • Deliberating feedback

    The IASB deliberated comments on its Exposure Draft

  • Final pronouncement

    The IASB issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency in November 2025

    The AcSB endorsed the IASB’s amendments, and they have been incorporated into Canadian GAAP with an effective date beginning on or after January 1, 2027. Earlier application is permitted

News

September 6, 2024

News, Document for Comment, International Activity

​​AcSB Exposure Draft – Translation to a Hyperinflationary Presentation Currency

The IASB has published an Exposure Draft, “Translation to a Hyperinflationary Presentation Currency,” which proposes amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates. Respond directly to the IASB with your feedback by November 22, 2024. In addition, stay tuned for the AcSB's wraparound exposure draft. The AcSB is not planning to respond to the IASB’s Exposure Draft, as this issue is not widespread for Canadian entities. If you think the AcSB should respond to this Exposure Draft, please send us your comment letter by October 31, 2024.