(a)

at a measurement date; and

(b)

for a specified purpose.

(a)

the nature and financial effects of the currency not being exchangeable into the other currency;

(b)

the spot exchange rate(s) used;

(c)

the estimation process; and

(d)

the risks to which the entity is exposed because of the currency not being exchangeable into the other currency.

(a)

when the entity reports foreign currency transactions in its functional currency, and, at the date of initial application, concludes that its functional currency is not exchangeable into the foreign currency or, if applicable, concludes that the foreign currency is not exchangeable into its functional currency, the entity shall, at the date of initial application:

(b)

when the entity uses a presentation currency other than its functional currency, or translates the results and financial position of a foreign operation, and, at the date of initial application, concludes that its functional currency (or the foreign operation’s functional currency) is not exchangeable into its presentation currency or, if applicable, concludes that its presentation currency is not exchangeable into its functional currency (or the foreign operation’s functional currency), the entity shall, at the date of initial application:

(a)

set a preferential exchange rate for imports of those goods and a ‘penalty’ exchange rate for capital remittances to other jurisdictions, thus resulting in different exchange rates applying to different exchange transactions; or

(b)

make the other currency available only to pay for imports of those goods and not for capital remittances to other jurisdictions.

(a)

when an entity reports foreign currency transactions in its functional currency (see paragraphs 20-37), the entity shall assume its purpose in obtaining the other currency is to realise or settle individual foreign currency transactions, assets or liabilities;

(b)

when an entity uses a presentation currency other than its functional currency (see paragraphs 38-43), the entity shall assume its purpose in obtaining the other currency is to realise or settle its net assets or net liabilities;

(c)

when an entity translates the results and financial position of a foreign operation into the presentation currency (see paragraphs 44–47), the entity shall assume its purpose in obtaining the other currency is to realise or settle its net investment in the foreign operation.

(a)

the distribution of a financial return to the entity’s owners;

(b)

the receipt of a financial return from the entity’s foreign operation; or

(c)

the recovery of the investment by the entity or the entity’s owners, such as through disposal of the investment.

(a)

a spot exchange rate for a purpose other than that for which an entity assesses exchangeability (see paragraphs A13–A14); and

(b)

the first exchange rate at which an entity is able to obtain the other currency for the specified purpose after exchangeability of the currency is restored (first subsequent exchange rate) (see paragraphs A15–A16).

(a)

whether several observable exchange rates exist – the existence of more than one observable exchange rate might indicate that exchange rates are set to encourage, or deter, entities from obtaining the other currency for particular purposes. These observable exchange rates might include an ‘incentive’ or ‘penalty’ and therefore might not reflect the prevailing economic conditions.

(b)

the purpose for which the currency is exchangeable – if an entity is able to obtain the other currency only for limited purposes (such as to import emergency supplies), the observable exchange rate might not reflect the prevailing economic conditions.

(c)

the nature of the exchange rate – a free-floating observable exchange rate is more likely to reflect the prevailing economic conditions than an exchange rate set through regular interventions by the relevant authorities.

(d)

the frequency with which exchange rates are updated – an observable exchange rate unchanged over time is less likely to reflect the prevailing economic conditions than an observable exchange rate that is updated on a daily basis (or even more frequently).

(a)

the time between the measurement date and the date at which exchangeability is restored – the shorter this period, the more likely the first subsequent exchange rate will reflect the prevailing economic conditions;

(b)

inflation rates – when an economy is subject to high inflation, including when an economy is hyperinflationary (as specified in IAS 29 Financial Reporting in Hyperinflationary Economies), prices often change quickly, perhaps several times a day. Accordingly, the first subsequent exchange rate for a currency of such an economy might not reflect the prevailing economic conditions.

(a)

the currency and a description of the restrictions that result in that currency not being exchangeable into the other currency;

(b)

a description of affected transactions;

(c)

the carrying amount of affected assets and liabilities;

(d)

the spot exchange rates used and whether those rates are:

(e)

a description of any estimation technique the entity has used, and qualitative and quantitative information about the inputs and assumptions used in that estimation technique; and

(f)

qualitative information about each type of risk to which the entity is exposed because the currency is not exchangeable into the other currency, and the nature and carrying amount of assets and liabilities exposed to each type of risk.

(a)

the name of the foreign operation; whether the foreign operation is a subsidiary, joint operation, joint venture, associate or branch; and its principal place of business;

(b)

summarised financial information about the foreign operation; and

(c)

the nature and terms of any contractual arrangements that could require the entity to provide financial support to the foreign operation, including events or circumstances that could expose the entity to a loss.

(a)

a reliable general price index is not available to all entities with transactions and balances in the currency;

(b)

the currency is not exchangeable into a relatively stable foreign currency. Exchangeability is assessed in accordance with IAS 21.