EFRAG launches consultation on Draft Endorsement Advice for Amendments to IAS 21
EFRAG has issued its draft endorsement advice letter and a separate invitation to comment 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 simple and can be applied consistently, thereby improving the relevance and comparability of reported information.
EFRAG's overall preliminary assessment is that Amendments to IAS 21 satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement. To this end, EFRAG has also updated its Endorsement Status Report.
Submit Your Comment
Download the invitation to comment in Word or PDF and submit it to EFRAG by Monday 2 February 2026.