Page 5 - PowerPoint Presentation

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

5