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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

All amendments issued up to and including the publication date of 1 January 2022 are included within the IFRS Foundation’s latest version of the issued interpretation: 2022 Issued Standards – IFRIC 22. Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2022 – see below for details.

Any amendments issued after 1 January 2022 will not be included in the IFRS Foundation’s 2022 Issued Standards but will be listed below and identified as such.

See the Corporate Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.

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