Document ID: chunk:federal_register_of_legislation:F2025C00208:body:0:p2
Version: federal_register_of_legislation:F2025C00208
Segment Type: other
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Character Range: 2988–6010

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 AASB 121 The Effects of Changes in Foreign Exchange Rates (as amended) is set out in paragraphs 1 – Aus62.2 and Appendices A and B.  All the paragraphs have equal authority.  Paragraphs in bold type state the main principles.  AASB 121 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IAS 21
AASB 121 The Effects of Changes in Foreign Exchange Rates as amended incorporates IAS 21 The Effects of Changes in Foreign Exchange Rates as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IAS 21) are identified with the prefix "Aus".  Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Tier 1
For-profit entities complying with AASB 121 also comply with IAS 21.
Not-for-profit entities' compliance with IAS 21 will depend on whether any "Aus" paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IAS 21.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 121

The Australian Accounting Standards Board made Accounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates under section 334 of the Corporations Act 2001 on 7 August 2015.

This compiled version of AASB 121 applies to annual periods beginning on or after 1 January 2025 but before 1 January 2027.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 9 October 2023 (see Compilation Details).

Accounting Standard AASB 121

The Effects of Changes in Foreign Exchange Rates

Objective
1 An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of this Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into