26 July 2024To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTTranslation to a Hyperinflationary Presentation Currency(Proposed amendments to IAS 21)
Comments to be received by 14 October 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft Translation to a Hyperinflationary Presentation Currency (Proposedamendments to IAS 21 The Effects of Changes in Foreign Exchange Rates). The Exposure Draftis available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredIn the situations where the reporting entity or the reporting entity’s foreign operation has afunctional currency that is the currency of a non-hyperinflationary economy and the reportingentity’s presentation currency is the currency of a hyperinflationary economy, applying therequirements in IAS 21, the reporting entity translates income, expenses and comparative amountsat historical exchange rates. The IASB observed that in a hyperinflationary economy, money losespurchasing power at a rapid rate that information is generally useful only if it reflects a measure ofcurrent purchasing power of the currency. Applying the current requirements of IAS 21 does notalways result in that outcome and in some cases has led to diversity in accounting practices.To address this accounting issues, the IASB is proposing narrow-scope amendments to IAS 21 tointroduce translation requirements for these entities to improve information for users of financialstatements while being simple and cost-effective for entities to apply.The FRSC invites your comments on the Exposure Draft by 14 October 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported 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 unless otherwiserequested by the respondent.
Invitation To Comment On The IASB Exposure Draft - Translation to a Hyperinflationary Presentation Currency (Proposed amendments to IAS 21)
下载原件26 July 2024To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTTranslation to a Hyperinflationary Presentation Currency(Proposed amendments to IAS 21)
Comments to be received by 14 October 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft Translation to a Hyperinflationary Presentation Currency (Proposedamendments to IAS 21 The Effects of Changes in Foreign Exchange Rates). The Exposure Draftis available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredIn the situations where the reporting entity or the reporting entity’s foreign operation has afunctional currency that is the currency of a non-hyperinflationary economy and the reportingentity’s presentation currency is the currency of a hyperinflationary economy, applying therequirements in IAS 21, the reporting entity translates income, expenses and comparative amountsat historical exchange rates. The IASB observed that in a hyperinflationary economy, money losespurchasing power at a rapid rate that information is generally useful only if it reflects a measure ofcurrent purchasing power of the currency. Applying the current requirements of IAS 21 does notalways result in that outcome and in some cases has led to diversity in accounting practices.To address this accounting issues, the IASB is proposing narrow-scope amendments to IAS 21 tointroduce translation requirements for these entities to improve information for users of financialstatements while being simple and cost-effective for entities to apply.The FRSC invites your comments on the Exposure Draft by 14 October 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported 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 unless otherwiserequested by the respondent.