The AASB is proposing to amend AAS 121 The Effects of Changes in Foreign Exchange Rates to help companies determine whether a currency can be exchanged into another currency and what accounting requirements to apply if the currency cannot be exchanged.
The amendments would specify:
(a) when a currency is exchangeable into another currency and, consequently, when it is not;
(b) how an entity determines the exchange rate to apply when a currency is not exchangeable; and
(c) the information an entity provides when a currency is not exchangeable.