Scope
4
This Interpretation applies to a foreign currency transaction (or part of it) when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income (or part of it).
5
This Interpretation does not apply when an entity measures the related asset, expense or income on initial recognition:
(a) at fair value; or
(b) at the fair value of the consideration paid or received at a date other than the date of initial recognition of the non-monetary asset or non-monetary liability arising from advance consideration (for example, the measurement of goodwill applying AASB 3 Business Combinations).
6
An entity is not required to apply this Interpretation to:
(a) income taxes; or
(b) insurance contracts (including reinsurance contracts) that it issues or reinsurance contracts that it holds.