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Change of functional currency and IAS21

A company changes its functional currency from EUR to USD (with effect from 1.1.2020)
Financial statements in all previous years were presented in EUR and will now be presented in USD.
As of 31.12.2020 and 31.12.2019 there is a payable balance in original currency other than USD and EUR (for example CHF).
As of 31.12.2020, this balance will have to be retranslated in the new currency USD, and a forex difference will be recognised in profit or loss? The change in the fuctional currency does not affect this treatment at year end under IAS 21, correct?

As stated in IAS 21.37: The effect of a change in functional currency is accounted for prospectively. In other words, an entity translates all items into the new functional currency using the exchange rate at the date of the change...

Applying the guidance, the entity would first prepare its 12.31.2019 balance sheet in the old FuncC (i.e. USD) including the payable which would be translated using the 31.12.1019 USD:CHF rate. It would then translate the entire balance sheet (including the payable) to the new FuncC (i.e. EUR) using the exchange rate on the transition date (31.12.2019 EUR: USD). The opening balance on 1.1.2020 would thus be in the new FuncC (EUR).  Applying the change prospectively, its 2020 net income would include the gain / loss from the remeasurement of the FC (CHF) payable to  the new FuncC (1.1.2020 EUR:CHF to 31.12.2020 EUR:CHF). As it the old FuncC (USD) stopped being the FuncC on 31.12.2019, the change between it and the FC (1.1.2020 USD:CHF to 31.12.2020 USD:CHF) is no longer relevant.


So if lets say the new functional and presentational currency is the EUR, as at 31.12.2020 in profit or loss Company will have an exchnage difference resulted from the remeasurement of CHF to EUR. For example if the payable balance is CHF20mln(31.12.2019 and 31.12.2020), as at 31.12.2020 , this will be EUR18mln (using oanda's closing), with a resulting fx difference to be recorded in profit or loss?


Thank you!

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