Document ID: chunk:federal_register_of_legislation:F2023L01377:body:0:p4
Version: federal_register_of_legislation:F2023L01377
Segment Type: other
Provision Reference: 
Character Range: 8452–11366

of the other currency at the measurement date for the specified purpose, the currency is not exchangeable into the other currency.
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Estimating the spot exchange rate when a currency is not exchangeable (paragraphs A11–A17)
19A An entity shall estimate the spot exchange rate at a measurement date when a currency is not exchangeable into another currency (as described in paragraphs 8, 8A–8B and A2–A10) at that date. An entity's objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions.

Reporting foreign currency transactions in the functional currency
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Reporting at the ends of subsequent reporting periods
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26 When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date. If exchangeability between two currencies is temporarily lacking, the rate used is the first subsequent rate at which exchanges could be made.
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Disclosure
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57A When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency (see paragraph 19A), the entity shall disclose information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. To achieve this objective, an entity shall disclose information about:
(a) the nature and financial effects of the currency not being exchangeable into the other currency;
(b) the spot exchange rate(s) used;
(c) the estimation process; and
(d) the risks to which the entity is exposed because of the currency not being exchangeable into the other currency.
57B Paragraphs A18–A20 specify how an entity applies paragraph 57A.

Effective date and transition
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60L AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability, issued in October 2023, amended paragraphs 8 and 26, added paragraphs 8A–8B, 19A, 57A–57B and Appendix A, relabelled the original Appendix A as Appendix B and amended it. An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2025. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact. The date of initial application is the beginning of the annual reporting period in which an entity first applies 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