THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards(1), and in particular Article 3(1) thereof,
Whereas:
By Commission Regulation (EU) 2023/1803(2) certain international accounting standards and interpretations that were in existence on 8 September 2022 were adopted.
On 15 August 2023, the International Accounting Standards Board issued certain amendments to International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates (‘IAS 21’). The amendments specify when a currency is exchangeable into another currency and, when it is not, how a company determines the exchange rate to apply, and the disclosures a company is to provide when a currency is not exchangeable.
By way of consequence of the amendments to IAS 21, International Financial Reporting Standard 1 First-time Adoption of International Financial Reporting Standards (‘IFRS 1’) was also amended in order to ensure consistency between those standards.
Following a consultation with the European financial reporting advisory group EFRAG, the Commission concludes that the amendments to IAS 21 meet the conditions for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.
Regulation (EU) 2023/1803 should therefore be amended accordingly.
The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,
HAS ADOPTED THIS REGULATION:
The Annex to Regulation (EU) 2023/1803 is amended as follows:
International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates (‘IAS 21’) is amended as set out in the Annex to this Regulation;
International Financial Reporting Standard 1 First-time Adoption of International Financial Reporting Standards (‘IFRS 1’) is amended in accordance with the amendments to IAS 21 as set out in the Annex to this Regulation.
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2025.
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 12 November 2024.
For the Commission
The President
Ursula von der Leyen