IFRIC 22

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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