IFRIC 22: Difference between revisions
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imported>Doug Williamson (Create page. Source IAS Plus https://www.iasplus.com/en/standards/ifric/ifric-22) |
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''Financial reporting - foreign exchange'' | ''Financial reporting - foreign exchange''. | ||
IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates). | IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates). | ||
The Interpretation deals with consideration paid or | The Interpretation - Foreign Currency Transactions and Advance Consideration - deals with consideration paid or received in advance. | ||
It covers foreign currency transactions when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income. | It covers foreign currency transactions when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income. | ||
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*If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. | *If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. | ||
Effective from January 2018. | |||
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* [[IFRIC]] | * [[IFRIC]] | ||
* [[International Financial Reporting Standards]] | * [[International Financial Reporting Standards]] | ||
[[Category:Compliance_and_audit]] | |||
Latest revision as of 14:52, 5 October 2023
Financial reporting - foreign exchange.
IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates).
The Interpretation - Foreign Currency Transactions and Advance Consideration - deals with consideration paid or received in advance.
It covers foreign currency transactions when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income.
Under IFRIC 22:
- The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
- If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
Effective from January 2018.
