Document ID: chunk:federal_register_of_legislation:F2023L01377:body:0:p5
Version: federal_register_of_legislation:F2023L01377
Segment Type: other
Provision Reference: 
Character Range: 11089–14107

those amendments.
60M In applying AASB 2023-5, an entity shall not restate comparative information. Instead:
(a) when the entity reports foreign currency transactions in its functional currency, and, at the date of initial application, concludes that its functional currency is not exchangeable into the foreign currency or, if applicable, concludes that the foreign currency is not exchangeable into its functional currency, the entity shall, at the date of initial application:
(i) translate affected foreign currency monetary items, and non-monetary items measured at fair value in a foreign currency, using the estimated spot exchange rate at that date; and
(ii) recognise any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings.
(b) when the entity uses a presentation currency other than its functional currency, or translates the results and financial position of a foreign operation, and, at the date of initial application, concludes that its functional currency (or the foreign operation's functional currency) is not exchangeable into its presentation currency or, if applicable, concludes that its presentation currency is not exchangeable into its functional currency (or the foreign operation's functional currency), the entity shall, at the date of initial application:
(i) translate affected 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.
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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