IFRIC 22 Foreign Currency Transactions and Advance Consideration
Published December 2016. Effective 1 January 2018.
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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.
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|Annual period starts||Effective version of standard||Notes on amendments|
|On or after 1 January 2020||IFRIC 22 2019 Issued Standards||Includes amendment 1|
|1 January 2018 – 31 December 2019||IFRIC 22 2019 Required Standards||Does not include the amendment|
Early adoption is allowed.
Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; The Issued Standards book assumes early application of all issued IFRSs.
For the latest version of the interpretation, and where the amendment is to be adopted early, refer to IFRIC 22 2019 Issued Standards.
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IFRSs referred to by IFRIC 22
Factsheets:This page was last updated 21 March 2019.