Global Standards for the world economy

Wednesday 18 September 2019

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The Board ratified IFRIC Interpretation Foreign Currency Transactions and Advance Consideration

 12 October 2016


Agenda Paper 12A: Ratification of IFRIC Interpretation

The Board ratified IFRIC Interpretation Foreign Currency Transactions and Advance Consideration (the Interpretation). The Interpretation addresses how to determine the exchange rate to use on initial recognition of the related asset, expense or income on the derecognition of a non-monetary asset or non-monetary liability arising from advance consideration in a foreign currency.

All 12 Board members agreed with this ratification.

Next steps

The Board expects to issue the Interpretation before the end of 2016.