• 2023 Issued Standards – SIC 7
  IFRIC and SIC Interpretations are available in the 2023 Issued Standards, which include all amendments issued up to and including 1 January 2023.

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).

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.