BC42 Many factors influence the exchangeability of one currency into another currency. To make the definition of ‘exchangeable’ operational and to help entities apply that definition consistently, the Standard specifies when an entity is able to exchange a currency for another currency. In developing the definition and related application guidance, the IASB discussed the following questions:
(a) what time frame for obtaining the other currency does an entity consider (see paragraphs BC43-BC44)?
(b) what if an entity is able to obtain the other currency, but does not intend to do so (see paragraph BC45)?
(c) which markets or exchange mechanisms for obtaining the other currency does an entity consider (see paragraph BC46)?
(d) what is the purpose for which an entity obtains the other currency (see paragraphs BC47-BC50)?
(e) what if an entity is able to obtain only limited amounts of the other currency (see paragraphs BC51-BC52)?
Time frame
BC43 The IASB concluded that a normal admini
…