17/02/2017 - EFRAG requests comments on its draft endorsement advice on IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration
EFRAG is consulting on its assessment of IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration against the endorsement criteria in the IAS Regulation, including the technical criteria and whether IFRIC 22 is conducive to the European public good. Comments are requested by 17 March 2017.
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration ('IFRIC 22').
The objective of IFRIC 22 is to clarify how the date of the transaction should be assessed for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability arising from advance consideration in a foreign currency.
IFRIC 22 becomes effective for annual periods beginning on or after 1 January 2018, with earlier application permitted.
EFRAG's overall preliminary assessment is that IFRIC 22 satisfies the criteria for endorsement for use in the EU and therefore recommends its endorsement.
EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
Comments are requested by 17 March 2017.
EFRAG has also updated its Endorsement Status Report, which can be downloaded here.