IFRIC 22 clarifies the transaction date to determine the exchange rate

IFRIC 22 clarifies the transaction date

On 8 December 2016, the International Accounting Standards Board (IASB) issued IFRS Interpretation,

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On 8 December 2016, the International Accounting Standards Board (IASB) issued IFRS Interpretation, IFRIC 22, Foreign Currency Transactions and Advance Consideration (the Interpretation) which clarifies the date of the
transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income when an entity has received or paid advance consideration in a foreign currency.

The Interpretation is applicable for annual periods beginning on or after 1 January 2018. Early application is permitted.

To access the press release issued by the IASB, please click here.

To view a high-level summary of this interpretation issued by KPMG IFRG Limited, please click here.

 

 

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