EFRAG submits Endorsement Advice Letter on amendments to IAS 21

EFRAG submits Endorsement Advice Letter on amendments to IAS 21

In August 2023, the IASB issued the Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability.
The amendments introduce requirements to assess when a currency is exchangeable into another currency and when it is not. The amendments require an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable into another currency. The amendments also provide disclosure requirements when an entity concludes that a currency is not exchangeable.
EFRAG has now submitted its Endorsement Advice relating to the Amendmentsfor use in the European Union and European Economic Area. The Endorsement Advice Letter may be accessed here.