Convenience translation

Learning objectives

• Distinguish a convenience translation from translation into the presentation currency.L3

Normative references

• IAS 21 §6The Standard applies to the presentation of an entity's financial statements in a foreign currency: it sets out the requirements for those financial statements to be described as complying with IFRS and, for translations of financial information that do not meet them, specifies the information to be disclosed (paras. 55 to 57).
• IAS 21 §51In the case of a group, the functional currency referred to in paras. 53 and 55 to 57 is that of the parent.
• IAS 21 §55An entity that presents its financial statements in a currency other than its functional currency describes them as complying with IFRS only if they comply with all the requirements of IFRSs, including the translation method in paras. 39 and 42 (cross-references to paras. 41A and 47A added by the November 2025 amendment, future requirement).
• IAS 21 §56Presenting financial statements or other financial information in another currency without meeting para. 55 (for example, by translating only selected items, or, for an entity whose functional currency is not the currency of a hyperinflationary economy, by translating all items at the most recent closing rate) does not comply with IFRS and requires the disclosures in para. 57.
• IAS 21 §57Information presented in a currency other than the functional currency or presentation currency without meeting para. 55: the entity (a) clearly identifies it as supplementary information, distinguishing it from the information that complies with IFRS; (b) discloses the currency in which that information is presented; (c) discloses its functional currency and the method of translation used.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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