Translation to a Hyperinflationary Presentation Currency (IAS 21)

The IASB met on 17 June 2025 to discuss stakeholder feedback on its Exposure Draft Translation to a Hyperinflationary Presentation Currency. The discussion covered:

• disclosure requirements for a subsidiary that applies IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 12A);
• transition requirements for implementing the amendments (Agenda Paper 12A); and
• the effective date and the due process steps to start balloting the amendments (Agenda Paper 12B).

Disclosure for a subsidiary that applies IFRS 19 and transition requirements (Agenda Paper 12A)

Disclosure for a subsidiary that applies IFRS 19

The IASB tentatively decided:

1. to require a subsidiary that applies IFRS 19 and the proposed translation method to disclose:
   1. the fact that all amounts in its financial statements or the results and financial position of its foreign operations have been translated at the closing rate at the date of the most recent statement of financial position; and
   2. the fact that its presentation currency has ceased to be the currency of a hyperinflationary economy, if applicable.
2. following the IASB’s tentative decision at its May 2025 meeting to introduce an exception to the proposed translation method for some entities, to require a subsidiary that applies IFRS 19 and the exception to label the comparative summarised financial information of the foreign operations to show that the subsidiary prepared the information by applying the same change in the general price index as it applied to other corresponding figures.

All 14 IASB members agreed with these decisions.

The IASB also tentatively decided to require a subsidiary that applies IFRS 19 to disclose summarised financial information about any foreign operations to which the subsidiary applied the proposed translation method.

Thirteen of 14 IASB members agreed with this decision.

Transition requirements

The IASB tentatively decided:

1. to require an entity to apply the amendments retrospectively in accordance with IAS 8 Basis of Preparation of Financial Statements unless the entity is in the scope of the exception to the proposed translation method the IASB introduced at its May 2025 meeting.
2. to require an entity in the scope of the exception described in (a):
   1. to restate the comparative information of its foreign operation with the same change in the general price index the entity applies to all other corresponding figures in accordance with paragraph 34 of IAS 29 Financial Reporting in Hyperinflationary Economies, instead of applying the proposed translation method retrospectively to reporting periods before the effective date of the amendments; and
   2. to label the comparative summarised financial information of the foreign operation prepared in accordance with (i) to show that the entity prepared the information using the same change in the general price index as it used for other corresponding figures.
3. not to require an entity to disclose the information that would otherwise be required by paragraph 28(f) of IAS 8 (or by paragraph 178(f) of IFRS 19).

All 14 IASB members agreed with these decisions.

The IASB also tentatively decided not to introduce an exemption for first-time adopters (as defined in IFRS 1 First-time Adoption of International Financial Reporting Standards) from applying the amendments retrospectively.

All 14 IASB members agreed with this decision.

Effective date and due process requirement (Agenda Paper 12B)

The IASB tentatively decided:

1. to require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2027;
2. to permit early application; and
3. to issue the amendments without re-exposure.

All 14 IASB members agreed with these decisions.