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The IFRS Interpretations Committee discussed a summary of the comment lettersand made a number of tentative decisions on matters raised in comment letters

 10 May 2016

IAS 21 The Effects of Changes in Foreign Exchange Rates—Foreign Currency Transactions and Advance Consideration (Agenda Paper 7–7B)

The Interpretations Committee considered a summary of the comment letters to the draft Interpretation Foreign Currency Transactions and Advance Consideration, and commenced its redeliberations of the proposals in the draft Interpretation.

The Interpretations Committee tentatively decided to retain in the final Interpretation the following proposals in the draft Interpretation:

  • the scope, explaining in the Basis for Conclusions:
    • why an entity is not required to apply the Interpretation to insurance contracts and income taxes; and
    • that determining whether an item is non-monetary depends on the particular facts and circumstances, and may require judgement;
  • the consensus; and
  • the transition requirements.

The Interpretations Committee also tentatively decided to provide first-time adopters of IFRS Standards with the same transition relief as is provided to entities already applying IFRS Standards.

Next steps

The Interpretations Committee will finalise its redeliberations of the draft Interpretation at a future meeting.