Document ID: chunk:federal_register_of_legislation:F2025C00208:body:0:p1
Version: federal_register_of_legislation:F2025C00208
Segment Type: other
Provision Reference: 
Character Range: 0–3275

Compiled AASB Standard  AASB 121

The Effects of Changes in Foreign Exchange Rates

This compiled Standard applies to annual periods beginning on or after 1 January 2025 but before 1 January 2027.  Earlier application is permitted for annual periods beginning after 24 July 2014 but before 1 January 2025.  It incorporates relevant amendments made up to and including 9 October 2023.
Prepared on 5 March 2025 by the staff of the Australian Accounting Standards Board.
Compilation no. 4

Compilation date:  31 December 2024

Obtaining copies of Accounting Standards
Compiled versions of Standards, original Standards and amending Standards (see Compilation Details) are available on the AASB website: aasb.gov.au and standards.aasb.gov.au.
Australian Accounting Standards Board
PO Box 204
Collins Street West
Victoria   8007
AUSTRALIA

Phone: (03) 9617 7600
E-mail: standard@aasb.gov.au
Website: www.aasb.gov.au

Other enquiries
Phone: (03) 9617 7600
E-mail: standard@aasb.gov.au

COPYRIGHT
© Commonwealth of Australia 2025
This compiled AASB Standard contains IFRS Foundation copyright material.  Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source.  Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.
All existing rights in this material are reserved outside Australia.  Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only.  Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.

Contents

COMPARISON WITH IAS 21
ACCOUNTING STANDARD
AASB 121 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES

from paragraph
Objective 1
Scope 3
Definitions 8
Elaboration on the definitions
Exchangeable 8A
Functional currency 9
Net investment in a foreign operation 15
Monetary items 16
Summary of the approach required by this Standard 17
ESTIMATING THE SPOT EXCHANGE RATE WHEN A CURRENCY IS NOT EXCHANGEABLE 19a
Reporting foreign currency transactions in the functional currency
Initial recognition 20
Reporting at the ends of subsequent reporting periods 23
Recognition of exchange differences 27
Change in functional currency 35
Use of a presentation currency other than the functional currency
Translation to the presentation currency 38
Translation of a foreign operation 44
Disposal or partial disposal of a foreign operation 48
Tax effects of all exchange differences 50
Disclosure 51
Effective date and transition 58
Withdrawal of other pronouncements
Commencement of the legislative instrument
Withdrawal of AASB pronouncements Aus62.2
APPENDICES
A  Application guidance
B  Australian simplified disclosures for Tier 2 entities
COMPILATION DETAILS
Deleted IAS 21 text

AVailable on the AASB website
Illustrative examples for IAS 21
Basis for Conclusions on IAS 21

Australian Accounting Standard