IFRIC 22: Difference between revisions

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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 receive in advance.
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.

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.


See also