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Chapter 7
2.2 Overseas balances at the reporting date
The treatment of an overseas balance at the reporting date depends on whether it is
monetary or non-monetary.
IAS 21 defines monetary items as assets or liabilities that will lead to
the receipt or payment of a determinable number of currency units. This
includes cash, receivables, payables and loans.
Reporting date
Monetary items Non-monetary items
Retranslate using the Do not re-translate.
closing rate of exchange.
If held at fair value, then
Forex gains or losses to the fair value should be
P/L. translated using the rate
on the date it was
determined.
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