Page 144 - FR Integrated Workbook 2018-19
P. 144
Chapter 11
Translating transactions
2.1 Initial transactions and settlements
Overseas transactions must be translated into the entity’s functional currency before
they are recorded.
Initial transaction
Translate at the rate
on the date of
transaction
If exchange rates have moved between the initial transaction and the
settlement date then a foreign exchange gain or loss will arise. This is
recorded in the statement of profit or loss.
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