EFRAG issues Endorsement Advice on Amendments to IAS 21
EFRAG has submitted its final endorsement advice letter to the European Commission on the proposed EU adoption of Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency (‘Amendments to IAS 21’), issued by the IASB on 13 November 2025.
The Amendments to IAS 21 change the translation procedures for entities that present their financial statements in a hyperinflationary currency. The changes apply when translating the results and financial position of:
- an entity whose functional currency is non-hyperinflationary but whose presentation currency is hyperinflationary;
- a foreign operation whose functional currency is non-hyperinflationary.
The translation procedure is straightforward and can be applied consistently, thereby improving the relevance and comparability of reported information.
In its overall assessment, EFRAG concludes that the Amendments to IAS 21 meet the criteria for endorsement in the European Union and therefore recommends their adoption. To this end, EFRAG has also updated its Endorsement Status Report.