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