28/09/2023 - EFRAG seek comments on its Draft Endorsement Advice on Lack of Echangeability (Amendments to IAS 21)
EFRAG is consulting on its assessment of Amendments to IAS 21 The Effects of Changes in Foreign Exchange RatesLack of Echangeability against the technical criteria for endorsement in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 7 December 2023 by completing the form available here. EFRAG's draft endorsement advice letter is available here.
In August 2023, the IASB issued the amendments to IAS 21 Lack of Exchangeability (‘the Amendments’) which were initially issued as an exposure draft ED/2021/4 in April 2021. The Amendments are effective for annual periods beginning on or after 1 January 2025 and specify when a currency is exchangeable into another currency and, consequently, when it is not, how an entity determines the exchange rate to apply when a currency is not exchangeable, and the disclosures an entity provides when a currency is not exchangeable.
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of the Amendments.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. EFRAG is seeking comments on all aspects of its analysis supporting its preliminary conclusions.
EFRAG's draft endorsement advice letter is available here.
You are asked to provide your comments on the draft endorsement advice letter by downloading the invitation to comment (here), filling in the comments and submitting the response by clicking on the ‘Comment publication’ link below .
Comments are requested by 7 December 2023 EOB.
For your information, EFRAG has also updated its Endorsement Status Report, which is available here.
