Application date and transition

Learning objectives

• Identify the effective date and the transition principle of the 2023 amendment.L3

Normative references

• IAS 21 §60LThe Lack of Exchangeability amendment (August 2023) amended paras. 8 and 26 and added paras. 8A-8B, 19A, 57A-57B and Appendix A; it applies to annual reporting periods beginning on or after 1 January 2025 (a requirement currently in force), with earlier application permitted and to be disclosed; the date of initial application is the beginning of the annual reporting period in which the entity first applies the amendment.
• IAS 21 §60MTransition for the 2023 amendment: comparative information is not restated. (a) Foreign currency transactions in the functional currency: at the date of initial application, the affected monetary items and non-monetary items measured at fair value in a foreign currency are translated at the estimated spot exchange rate, with the effect recognised as an adjustment to the opening balance of retained earnings; (b) different presentation currency or translation of a foreign operation: the affected assets and liabilities (and equity items when the functional currency is hyperinflationary) are translated at the estimated rate, with the effect recognised as an adjustment to the cumulative amount of translation differences in equity.

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

1 question

• The 2023 amendments on exchangeability apply to annual periods beginning on or after 1 January 2025, with early application permitted.L3