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IFRS® Accounting Standards

Lack of Exchangeability (Amendments to IAS 21)


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

The proposed amendment to IAS 21 would (a) define exchangeability and thus a lack of exchangeability; and (b) specify how an entity determines the spot exchange rate when a currency lacks exchangeability. 

The AcSB’s due process includes:

  • ensuring that Canadian entities’ financial reporting needs are considered by the IASB; and
  • issuing the AcSB’s own exposure draft on each IASB proposal.

Subject to the responses to the AcSB’s Exposure Draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.

Staff Contact(s)

Jamie Goodman, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to November 2019

  • Approving project

    The IASB added the project to its agenda in November 2019

  • Engaging Communities

    The IASB issued an Exposure Draft in April 2021

  • Deliberating feedback

    The IASB deliberated comments on its Exposure Draft

  • Final pronouncement

    The IASB issued the final amendments in August 2023

    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, 2025


November 1, 2023

International Activity, News

AcSB endorses Lack of Exchangeability (Amendments to IAS 21)

The amendments are now in Part I of the CPA Canada Handbook – Accounting, effective for annual reporting periods beginning on or after January 1, 2025. The amendments require entities to apply a consistent approach in assessing whether a currency can be exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.

August 22, 2023

International Activity, News

Update – IASB issues amendments to IAS 21

The IASB issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates that require entities to provide more useful information in their financial statements when a currency cannot be exchanged into another currency. The AcSB will ballot the final amendments and complete its endorsement process in Q4 2023.

May 18, 2021

Document for Comment

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

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. The AcSB will not be submitting a response letter to the IASB Exposure Draft. However, this decision will be reviewed throughout the comment period and reconsidered based on stakeholder feedback. As a result, stakeholders are encouraged to reply to the AcSB prior to July 15, 2021 to support our ongoing discussions.

April 28, 2021

International Activity

IASB Exposure Draft – Lack of Exchangeability

The IASB has issued an Exposure Draft to amend IAS 21. The proposed amendments aim to help companies determine whether a currency can be exchanged into another currency, and what accounting to apply if the currency cannot be exchanged. Canadian stakeholders are encouraged to submit their comments to the IASB by September 1, 2021.