ICAEW.com works better with JavaScript enabled.

IFRIC 22 Foreign Currency Transactions and Advance Consideration

IFRIC 22 clarifies the accounting treatment applicable to transactions that include the receipt or payment of foreign currency consideration in advance.

Access the interpretation

Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).


IFRIC 22 provides guidance applicable when an entity receives or pays consideration in advance in a foreign currency. In this case a non-monetary asset or liability (a prepayment or deferred income) is recognised. This is subsequently derecognised when the related asset, expense or income is recognised. The exchange rate applied to recognise the advance consideration and to determine the initial measurement of the related asset, expense or income (or part of it) is the spot rate on the date on which the advance consideration is received or paid. If there is more than one advance payment or receipt, a date of transaction must be determined for each payment or receipt.

Recent amendments

Log in to read more

These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.

Other resources

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

Browse the collections
Black woman working at computer
Technical Advisory Services

Our experienced advisors can help you with technical questions.

Get in touch
Young man reading in a library
Library and Information Service

Expert help with research and access to trustworthy, professional sources.