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Accounting Standard AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability
Amendments to AASB 1Amendments to AASB 1
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Amendments to AASB 1
| Paragraphs 31C and D27 are amended and paragraph 39AI is added. New text is underlined and deleted text is struck through. |
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Presentation and disclosure
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Explanation of transition to Australian Accounting Standards
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Use of deemed cost after severe hyperinflation
31C If an entity elects to measure assets and liabilities at fair value and to use that fair value as the deemed cost in its opening Australian-Accounting-Standards statement of financial position because of severe hyperinflation (see paragraphs D26–D30), the entity’s first Australian-Accounting-Standards financial statements shall disclose an explanation of how, and why, the entity had, and then ceased to have, a functional currency that is subject to severe hyperinflation. has both of the following characteristics:
(a) a reliable general price index is not available to all entities with transactions and balances in the currency.
(b) exchangeability between the currency and a relatively stable foreign currency does not exist.
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Effective date
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39AI AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability, issued in October 2023, amended paragraphs 31C and D27. An entity shall apply those amendments when it applies AASB 121 The Effects of Changes in Foreign Exchange Rates (as amended in October 2023).
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Appendix D
Exemptions from other Australian Accounting Standards
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Severe hyperinflation
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D27 The currency of a hyperinflationary economy is subject to severe hyperinflation if it has both of the following characteristics:
(a) a reliable general price index is not available to all entities with transactions and balances in the currency.
(b) exchangeability between the currency is not exchangeable into and a relatively stable foreign currency does not exist. Exchangeability is assessed in accordance with AASB 121.