The IASB recently issued Lack of Exchangeability which amended IAS 21 The Effects of Changes in Foreign Exchange Rates. 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.
BDO’s IFR Bulletin 2023/08 provides a summary of the effects of the amendments.
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Source: BDO Global