Call for Comments: Draft Endorsement Criteria Assessment on Lack of Exchangeability (Amendments to IAS 21)

The UKEB has today published a Draft Endorsement Criteria Assessment (DECA) on Lack of Exchangeability (Amendments to IAS 21).

In August 2023 the IASB published Lack of Exchangeability, which amended IAS 21 The Effects of Changes in Foreign Exchange Rates. The amendments aim to improve the usefulness of the information by:​

• defining what it means for a currency to be “exchangeable”;
• providing guidance on determining the exchange rate when a currency is not exchangeable; and, ​
• specifying the disclosures to provide in those circumstances.

The Amendments are effective for annual reporting periods beginning on or after 1 January 2025, with early application permitted.

The UKEB invites stakeholders’ views on the DECA conclusions regarding potential UK adoption of the Amendments.

Stakeholders are invited to provide feedback either via the Invitation to Comment form or by email to UKEndorsementBoard@endorsement-board.uk. Comments are welcome until close of business 6 May 2024.

Visit our website for more information on the UKEB’s approach to this project.