The IASB issued amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates. The changes, according to a news release, will require companies to provide more useful information in their financial statements when a currency cannot be exchanged into another currency.
“The amendments respond to stakeholder feedback and concerns about diversity in practice in accounting for a lack of exchangeability between currencies,” the release said. “[They] will require companies to apply a consistent approach in assessing whether a currency can be exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.”
The amendments will be consolidated into IAS 21 and IFRS 1 in March 2024, at which point they will be available for users with free website registration, the release said. They will become effective for annual reporting periods beginning on or after 1 January 2025. Early application is permitted.
The updated standard document is available to download now for users with an IFRS digital subscription and an IFRS digital and print subscription.
UK regulator updates Taxonomy Suite
The UK Financial Reporting Council (FRC) published a draft version of the 2024 Taxonomy Suite and is aiming to produce the final version in October, a news release said. Here are some of the FRC’s changes, according to a news release:
- Updated and added tags to enable the UK Endorsement Board’s (UKEB) endorsed 2021 narrow-scope amendments, Lease Liability in a Sale and Leaseback (Amendment to IFRS 16), and International Tax Reform—Pillar Two Model Rules (proposed amendments to IAS 12)/Amendments to FRS 102. Recommendations on high quality disclosures of Expected Credit Losses have been digitised. Some pre-existing tags have been updated, and new tags have been created to enable preparers to tag with the granularity described in the recommendations.
- The charities extension has been updated.
- The Irish extension has not been updated; there will not be a new Irish extension for 2024.
The consultation is open for public comment until 6 October. Responses can be sent through the FRC’s comment tool Yeti or emailed to xbrl@frc.org.uk.
Energy support scheme looks to help SMEs
UK businesses will have access to advice and support to reduce energy bills and cut carbon emissions through a new support scheme, a UK government press release said. The UK Business Climate Hub provides new tools to help businesses measure and track their energy usage.
“It offers detailed advice on everything from sourcing products from green suppliers and reducing emissions from freight and logistics to the most cost-effective ways of installing solar panels and electric vehicle charging points,” the release said. “Research shows that such measures can significantly save companies on their overheads.”
The new support is particularly aimed at small- and medium-size businesses (SMEs). The release cited research showing that 90% of SMEs are keen to tackle climate change but find it difficult to know how or where to start on reducing their carbon footprint.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
