IAS 21 The Effects of Changes in Foreign Exchange Rates - A Closer Look
The International Accounting Standards Committee issued the the International Accounting Standard 21, The Effects of Changes in Foreign Exchange Rates. An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of IAS 21 is to prescribe the basis for selecting an entity’s functional currency and the accounting treatment for the recognition of, and subsequent measurement of, transactions denominated in a foreign currency and the process of translating financial statements denominated in a foreign currency. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. This article presents a closer look of the standard (objective, scope, definitions, transaction, translation and disclosures).
|Date of creation:||20 Sep 2009|
|Publication status:||Published in The Management Accountant 10.44(2009): pp. 806-811|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33566. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.