SIC 7 Introduction of the Euro
Revised December 2003. Effective 1 January 2005.
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SIC 7 addresses how the introduction of the Euro affects the application of IAS 21.
It concludes that IAS 21 should be strictly applied to the changeover, and in particular:
- Monetary assets and liabilities should be translated into the functional currency at the closing rate with any exchange differences recognised in profit or loss (other than where hedging rules apply)
- Cumulative exchange differences arising on the translation of financial statements of foreign operations should continue to be accumulated in equity and reclassified to profit or loss only on disposal of the net investment in the foreign operation
- Exchange differences resulting from the translation of liabilities denominated in participating currencies should not be included in the carrying amount of related assets.
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IFRSs referred to by SIC 7
This page was last updated 21 March 2019
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