On Sep. 7, MLY ASB amended rules re dealing lack of exchangeability.
MLY ASB amended MFRS 121 to improve information provided in financial statements when dealing with currencies that cannot be exchanged into another currency.
Align with Lack of exchangeability issued by IASB, in response to feedback, concerns about inconsistent practices in accounting for currencies that lack exchangeability.
Entities will have a consistent method for determining if a currency can be exchanged.
Offer guidance on using spot exchange rates when exchangeability is not possible.
Entities are required to provide disclosures to help users to understand the impact of non-exchangeability on their financial performance, position, and cash flows.
Effectiveness
The amendments will be effective for annual reporting periods beginning on or after Jan. 1, 2025, but earlier application is permitted.
