Notes
IAS 21 Foreign Exchange
Content of the notes (1)
Page 1
IAS 21 Effect of changes in foreign exchange rates
Unsettled transactions
• If a transaction is still unsettled at the reporting date, there will be an outstanding asset or liability on the statement of financial position.
• If the asset/liability is a monetary item: retranslate at closing rate.
• If the asset/liability is a nonmonetary item: leave at historic rate.
• Exchange differences will arise on the retranslation of the monetary items, these are also posted to the statement of profit or loss.
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- Financial Reporting knowledge Note on IAS 21 Foreign Exchange, created by Marilyn May on 05/11/2017.
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- Marilyn May · Nov 2017
- Updated
- Nov 5, 2017
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