CFM8040 – Accounting for foreign exchange: recent developments in accounting standards

Developments in accounting standards: overview

SSAP20 remains in force. The Accounting Standards Board (ASB) published two Financial Reporting Standards (FRS) in December 2004:

• FRS23: ‘The effects of changes in foreign exchange rates’
• FRS24: ‘ ‘Financial reporting in hyperinflationary economies’.

This part of the guidance outlines the background to the changes, and looks at the main ways in which the FRS23 proposals differ from SSAP20.