21 April 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/4 Lack of ExchangeabilityComments to be received by 30 July 2021The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2021/4 Lack of Exchangeability. The Exposure Draft is available on the Institute'swebsite:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/IAS 21 The Effects of Changes in Foreign Exchange Rates sets out the exchange rate acompany uses when it reports foreign currency transactions or a foreign operation’s resultsin a different currency. However, the Standard does not set out the exchange rate to usewhen there is no observable exchange rate the company can use—such as when acurrency cannot be converted into a foreign currency.The International Accounting Standards Board (IASB) proposes amendments to IAS 21 tohelp companies determine whether a currency can be exchanged into another currencyand what accounting to apply if the currency cannot be exchanged. The proposedamendments would improve the usefulness of the information provided to investors byrequiring a consistent approach to determining whether a currency is exchangeable intoanother currency and, when it is not, determining the exchange rate to use and thedisclosures to provide.The FRSC invites your comments on the proposal as set out in the ED by 30 July 2021 toallow your comments to be considered in developing its response to the IASB. Commentsshould be supported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.
Invitation to Comment on IASB Exposure Draft ED/2021/4 Lack of Exchangeability
下载原件21 April 2021To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFTED/2021/4 Lack of ExchangeabilityComments to be received by 30 July 2021The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2021/4 Lack of Exchangeability. The Exposure Draft is available on the Institute'swebsite:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/IAS 21 The Effects of Changes in Foreign Exchange Rates sets out the exchange rate acompany uses when it reports foreign currency transactions or a foreign operation’s resultsin a different currency. However, the Standard does not set out the exchange rate to usewhen there is no observable exchange rate the company can use—such as when acurrency cannot be converted into a foreign currency.The International Accounting Standards Board (IASB) proposes amendments to IAS 21 tohelp companies determine whether a currency can be exchanged into another currencyand what accounting to apply if the currency cannot be exchanged. The proposedamendments would improve the usefulness of the information provided to investors byrequiring a consistent approach to determining whether a currency is exchangeable intoanother currency and, when it is not, determining the exchange rate to use and thedisclosures to provide.The FRSC invites your comments on the proposal as set out in the ED by 30 July 2021 toallow your comments to be considered in developing its response to the IASB. Commentsshould be supported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.