Reporting Currency – Translation from Measurement Currency to Presentation Currency (SIC-30)
An Interpretation of IAS 21, The Effects of Changes in Foreign Exchange Rates, and IAS 29, Financial Reporting in Hyperinflationary Economies.
- SIC D30 was issued July 2001.
- Final SIC 30 was approved by the IASB in December 2001.
- Effective Date: Annual financial periods beginning on or after 1 January 2002.
SIC 30 addresses how an enterprise translates items in its financial statements from a measurement currency to a presentation currency. SIC 30 provides that when the measurement currency is not the currency of a hyperinflationary economy, the requirements of SIC 19.9 should be applied as follows:
- assets and liabilities for all balance sheets presented (including comparatives) are translated at the closing rate existing at the date of each balance sheet presented;
- income and expense items are translated at the exchange rates existing at the dates of the transactions;
- equity items (other than the net profit or loss for the period that is included in retained earnings) are translated at the closing rate existing at the date of each balance sheet presented; and
- all exchange differences resulting from translation should be recognised directly in equity.
When the measurement currency is the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows:
- assets, liabilities, and equity items for all balance sheets presented (including comparatives) should be translated at the closing rate existing at the date of the most recent balance sheet presented; and
- income and expense items for all periods presented should be translated at the closing rate existing at the end of the most recent period presented.
SIC 30 also addresses the information that should be disclosed when additional information not required by International Accounting Standards is displayed in financial statements and in a currency, other than the currency used in presenting the financial statements, as a convenience to certain users. An enterprise should:
- clearly identify the information as supplementary information to distinguish it from the information required by International Accounting Standards and translated in accordance with the Interpretation;
- disclose the measurement currency used to prepare the financial statements and the method of translation used to determine the supplementary information displayed;
- disclose the fact that the measurement currency reflects the economic substance of the underlying events and circumstances of the enterprise and that the supplementary information is displayed in another currency for convenience purposes only; and
- disclose the currency in which the supplementary information is displayed.
- SIC-01 - Consistency - Different Cost Formulas for Inventories
- SIC-02 - Consistency - Capitalisation of Borrowing Costs
- SIC-03 - Elimination of Unrealised Profits and Losses on Transactions with Associates
- SIC-05 - Classification of Financial Instruments - Contingent Settlement Provisions
- SIC-06 - Costs of Modifying Existing Software
- SIC-07 - Introduction of the Euro
- SIC-08 - First-Time Application of IASs as the Primary Basis of Accounting
- SIC-09 - Business Combinations - Classification either as Acquisitions or Unitings of Interests
- SIC-10 - Government Assistance - No Specific Relation to Operating Activities
- SIC-11 - Foreign Exchange - Capitalisation of Losses Resulting from Severe Currency Devaluations
- SIC-12 - Consolidation - Special Purpose Entities
- SIC-13 - Jointly Controlled Entities - Non-Monetary Contributions by Venturers
- SIC-14 - Property, Plant and Equipment - Compensation for the Impairment or Loss of Items
- SIC-15 - Operating Leases - Incentives
- SIC-16 - Share Capital - Reacquired Own Equity Instruments (Treasury Shares)
- SIC-17 - Equity - Costs of an Equity Transaction
- SIC-18 - Consistency - Alternative Methods
- SIC-19 - Reporting Currency - Measurement and Presentation of Financial Statements Under IAS 21 and IAS 29
- SIC-20 - Equity Accounting Method - Recognition of Losses
- SIC-21 - Income Taxes - Recovery of Revalued Non-Depreciable Assets
- SIC-22 - Business Combinations - Subsequent Adjustment of Fair Values and Goodwill Initially Reported
- SIC-23 - Property, Plant and Equipment - Major Inspection or Overhaul Costs
- SIC-24 - Earnings Per Share - Financial Instruments that May Be Settled in Shares
- SIC-25 - Income Taxes - Changes in the Tax Status of an Enterprise or its Shareholders
- SIC-27 - Evaluating the Substance of Transactions in the Legal Form of a Lease
- SIC-28 - Business Combinations - 'Date of Exchange' and Fair Value of Equity Instruments
- SIC-29 - Disclosure – Service Concession Arrangements
- SIC-30 - Reporting Currency – Translation from Measurement Currency to Presentation Currency
- SIC-31 - Revenue – Barter Transactions Involving Advertising Services
- SIC-32 - Intangible Assets – Website Costs
- SIC-33 - Consolidation and Equity Method - Potential Voting Rights and Allocation of Ownership Interests
Note: Please note that these summaries are only for reference purposes and are not a substitute for the entire SIC. Kindly read the whole text of SIC before consulting these summaries.
Summaries are courtesy of Deloitte.