EFRAG has completed its due process regarding IFRIC 22 Foreign Currency Transactions and Advance Consideration and has submitted its Endorsement Advice Letter to the EC.
On 8 December 2016, the IASB issued IFRIC 22 Foreign Currency Transactions and Advance Consideration to clarify how the date of the transaction should be assessed for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration in a foreign currency.
IFRIC 22 becomes effective for annual periods beginning on or after 1 January 2018, with earlier application permitted. EFRAG has submitted its Endorsement Advice relating to IFRIC 22 for use in the EU and EEA. EFRAG assesses that IFRIC 22 meets all technical endorsement criteria of the IAS Regulation and is conducive to the European public good. It therefore recommends its endorsement.
Full press release
Full Endorsement Advice Letter
© EFRAG - European Financial Reporting Advisory Group
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