Lack of Exchangeability

The amending standard Lack of Exchangeability defines when a currency is exchangeable and introduces new requirements, guidance, and disclosures relating to estimating the spot exchange rate when a currency is not exchangeable. 

Commencement and Application

Application of the amendments is required for accounting periods which begin on or after 1 January 2025.

Application is permitted for accounting period that begin before 1 January 2025 but have not ended or do not end before 30 November 2023.

Reduced Disclosure Regime

The amending standard Lack of Exchangeability RDR exempts Tier 2 for-profit entities from some of the new disclosure requirements.


  • Lack of Exchangeability – Periods beginning on or after
    1 Jan 2025 (early adoption permitted)

    Date of issue: Nov 2023

  • Lack of Exchangeability RDR (Tier 2 disclosure concessions)

    Date of issue: Jan 2024

*Additional Material is restricted to those with NZ-assigned IP addresses only.

What do the amendments require:

An entity is required to disclose information that enables users to understand how the currency not being exchangeable into the other currency affects, or is expected to affect the entity’s financial performance, financial position and cash flows.