Exposure Draft of Lack of Exchangeability

Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of IFRS Foundation. The IASB, before issuing the new/amendments to IFRS Standards, issues consultative documents (such as Discussion Paper (DP), Exposure Draft (ED) etc) seeking public comments from across the globe. The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments on the consultative documents issued by the IASB. It also helps the Indian stakeholders to be aware of the preparations required for implementation of Ind AS in line with adhering to global timelines. At present, the following Exposure Draft issued by the IASB is open for comments for proposed guidance for itself when developing and drafting disclosure requirements in IFRS Standards in future: 

Lack of Exchangeability - IAS 21 sets out the exchange rate a company uses when it reports foreign currency transactions or a foreign operation’s results in a different currency. However, the Standard does not set out the exchange rate to use when there is no observable exchange rate the company can use—such as when a currency cannot be converted into a foreign currency. The proposed amendments would help companies in determining whether a currency can be exchanged into another currency, and what accounting to apply if the currency cannot be exchanged. 

How to comment 

Comments on the abovementioned ED may be submitted through any of the following modes:    



Click on "Submit a comment letter" below (Preferred method)            



Comments can be sent to: commentsasb@icai.in   



Secretary, Accounting Standards Board,   

The Institute of Chartered Accountants of India,   

ICAI Bhawan, Post Box No. 7100,    

Indraprastha Marg, New Delhi 110 002   

Further clarifications on this ED may be sought by e-mail to asb@icai.in

Comment letter deadline

The Exposure Draft is open for comment until 30th July, 2021

Due process documents
Exposure Draft of Lack of Exchangeability  [PDF]