Foreign currency derivatives excluded

Learning objectives

• Distinguish foreign currency derivatives within the scope of IFRS 9 from those that remain within the scope of the Standard.L1, L2

Normative references

• IAS 21 §4The many foreign currency derivatives within the scope of IFRS 9 are excluded from the scope; those outside IFRS 9 (for example, some derivatives embedded in other contracts) remain within the scope, and the Standard also applies when an entity translates amounts relating to derivatives from its functional currency into its presentation currency. Hedge accounting is dealt with in para. 5.

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

1 question

• Foreign currency derivatives are excluded from the scope of IAS 21, whichever standard they fall under.L1