{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

IAS21_06 - IAS 21 International Accounting Standard 21 The...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
IAS 21 © IASCF 1147 International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates This version includes amendments resulting from Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates— Net Investment in a Foreign Operation issued on 15 December 2005.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
IAS 21 1148 © IASCF C ONTENTS paragraphs INTRODUCTION IN1–IN17 INTERNATIONAL ACCOUNTING STANDARD 21 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES OBJECTIVE 1–2 SCOPE 3–7 DEFINITIONS 8–16 Elaboration on the definitions 9–16 Functional currency 9–14 Net investment in a foreign operation 15–15A Monetary items 16 SUMMARY OF THE APPROACH REQUIRED BY THIS STANDARD 17–19 REPORTING FOREIGN CURRENCY TRANSACTIONS IN THE FUNCTIONAL CURRENCY 20–37 Initial recognition 20–22 Reporting at subsequent balance sheet dates 23–26 Recognition of exchange differences 27–34 Change in functional currency 35–37 USE OF A PRESENTATION CURRENCY OTHER THAN THE FUNCTIONAL CURRENCY 38–49 Translation to the presentation currency 38–43 Translation of a foreign operation 44–47 Disposal of a foreign operation 48–49 TAX EFFECTS OF ALL EXCHANGE DIFFERENCES 50 DISCLOSURE 51–57 EFFECTIVE DATE AND TRANSITION 58–60 WITHDRAWAL OF OTHER PRONOUNCEMENTS 61–62 APPENDIX Amendments to other pronouncements APPROVAL OF IAS 21 BY THE BOARD APPROVAL OF AMENDMENT TO IAS 21 BY THE BOARD BASIS FOR CONCLUSIONS
Image of page 2
IAS 21 © IASCF 1149 International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates (IAS 21) is set out in paragraphs 1–62 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 21 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements . IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
IAS 21 1150 © IASCF Introduction IN1 International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates (IAS 21) replaces IAS 21 The Effects of Changes in Foreign Exchange Rates (revised in 1993), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. The Standard also replaces the following Interpretations: SIC-11 Foreign Exchange—Capitalisation of Losses Resulting from Severe Currency Devaluations SIC-19 Reporting Currency—Measurement and Presentation of Financial Statements under IAS 21 and IAS 29 SIC-30 Reporting Currency—Translation from Measurement Currency to Presentation Currency . Reasons for revising IAS 21 IN2 The International Accounting Standards Board developed this revised IAS 21 as part of its project on Improvements to International Accounting Standards.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern