IAS 21 The Effects of Changes in Foreign Exchange Rates replaced IAS 21 Accounting for the Effects of Changes in Foreign Exchange Rates (issued in July 1983). In December 2003 the Board issued a revised IAS 21 as part of its initial agenda of technical projects.

IAS 21 prescribes how to account for foreign currency transactions and operations in financial statements.

In August 2023 the Board issued Lack of Exchangeability (Amendments to IAS 21) to require an entity to apply a consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to determining the …

IAS 21 states that foreign currency monetary amounts should be reported using the closing rate with gains or losses recognised in profit or loss in the period in which they arise, even when the rate is abnormally high or low.

2024年10月3日 · In 2023, the IASB issued amendments to IAS 21 that will require companies to provide more information in their financial statements when a currency cannot be exchanged into another currency, an issue that wasn’t previously covered.

IAS 21 The Effects of Changes in Foreign Exchange Rates provides guidance to determine the functional currency of an entity under International Financial Reporting Standards (IFRS).

Net Investment in a Foreign Operation (Amendment to IAS 21), issued in December 2005, added paragraph 15A and amended paragraph 33. An entity shall apply those amendments for annual periods beginning on or after 1 January 2006.

IAS 21 specifies the exchange rate to use for transactions expressed in foreign currency and foreign operations, and how to report the efects of changes in the exchange rate in the financial statements of both individual companies and groups.

IAS 21 permits an entity to present its financial statements in any currency (or currencies). The principal issues are which exchange rate (s) to use and how to report the effects of changes in exchange rates in the financial statements.

Under IAS 21, the management of a company needs to determine the functional currency of the company by assessing various indicators of the economic environment in which the company operates. IAS 21 provides primary and secondary indicators for use in the determination of an entity's functional currency, as summarised below.