Background to the August 2023 amendments (BC41)

BC41 In August 2023 the IASB issued Lack of Exchangeability and amended the Standard to improve the usefulness of information provided to users of financial statements. The amendments require entities to apply a consistent approach to determining whether a currency is exchangeable into another currency and the spot exchange rate to use when it is not. The IASB had been informed of diverse views among stakeholders on how to determine whether a currency is exchangeable into another currency and the exchange rate to use when it is not. Although circumstances in which a currency is not exchangeable into another currency might arise relatively infrequently, when they do arise, economic conditions can deteriorate rapidly. In those circumstances, the diverse views on the application of the Standard could have led to material differences in affected entities’ financial statements. In developing the amendments, the IASB considered input from the IFRS Interpretations Committee and feedback fro

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