Page 102 - Finac1 Test 2 slides

THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES

Outcomes

• Define the objective and scope of IAS 21 and apply the

definitions

• Determine the transaction date of a foreign currency

transaction and record it at the spot exchange rate on
transaction date

• Remeasure monetary items to fair value at reporting date

and settlement date using the appropriate exchange rates

• Recognise foreign exchange differences in profit or loss or in
other comprehensive income

• Disclose foreign exchange differences in the financial

statements

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