Document ID: chunk:federal_register_of_legislation:F2025C00208:body:0:p18
Version: federal_register_of_legislation:F2025C00208
Segment Type: other
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Character Range: 45338–48272

assets and liabilities using the estimated spot exchange rate at that date;
(ii) translate affected equity items using the estimated spot exchange rate at that date if the entity's functional currency is hyperinflationary; and
               (iii) recognise any effect of initially applying the amendments as an adjustment to the cumulative amount of translation differences – accumulated in a separate component of equity.

Withdrawal of other pronouncements
61–
62 [Deleted by the AASB]

Commencement of the legislative instrument
Aus62.1 [Repealed]

Withdrawal of AASB pronouncements
Aus62.2 This Standard repeals AASB 121 The Effects of Changes in Foreign Exchange Rates issued in July 2004. Despite the repeal, after the time this Standard starts to apply under section 334 of the Corporations Act (either generally or in relation to an individual entity), the repealed Standard continues to apply in relation to any period ending before that time as if the repeal had not occurred.
[Note: When this Standard applies under section 334 of the Corporations Act (either generally or in relation to an individual entity), it supersedes the application of the repealed Standard.]

Appendix A
Application guidance
This appendix is an integral part of the Standard.

Exchangeability
A1 The purpose of the following diagram is to help entities assess whether a currency is exchangeable and estimate the spot exchange rate when a currency is not exchangeable.

Step I:  Assessing whether a currency is exchangeable (paragraphs 8 and 8A–8B)
A2 Paragraphs A3–A10 set out application guidance to help an entity assess whether a currency is exchangeable into another currency. An entity might determine that a currency is not exchangeable into another currency, even though that other currency might be exchangeable in the other direction. For example, an entity might determine that currency PC is not exchangeable into currency LC, even though currency LC is exchangeable into currency PC.

Time frame
A3 Paragraph 8 defines a spot exchange rate as the exchange rate for immediate delivery. However, an exchange transaction might not always complete instantaneously because of legal or regulatory requirements, or for practical reasons such as public holidays. A normal administrative delay in obtaining the other currency does not preclude a currency from being exchangeable into that other currency. What constitutes a normal administrative delay depends on facts and circumstances.

Ability to obtain the other currency
A4 In assessing whether a currency is exchangeable into another currency, an entity shall consider its ability to obtain the other currency, rather than its intention or decision to do so. Subject to the other requirements in paragraphs A2–A10, a currency is exchangeable into another currency if an entity is able to obtain the other currency – either directly or indirectly – even if it intends or decides not to