International GAAP 2020

Chapter 15Foreign exchange

• 1 INTRODUCTION
  • 1.1 Background
  • 1.2 Relevant pronouncements
• 2 IAS 21: OBJECTIVE, SCOPE AND DEFINITIONS
  • 2.1 Objective of the standard
  • 2.2 Scope
  • 2.3 Definitions of terms
• 3 SUMMARY OF THE APPROACH REQUIRED BY IAS 21
• 4 DETERMINATION OF AN ENTITY'S FUNCTIONAL CURRENCY
  • 4.1 General
  • 4.2 Intermediate holding companies or finance subsidiaries
  • 4.3 Investment holding companies
  • 4.4 Branches and divisions
  • 4.5 Documentation of judgements made
• 5 REPORTING FOREIGN CURRENCY TRANSACTIONS IN THE FUNCTIONAL CURRENCY OF AN ENTITY
  • 5.1 Initial recognition
    • 5.1.1 Identifying the date of transaction
    • 5.1.2 Deposits and other consideration received or paid in advance
    • 5.1.3 Using average rates
    • 5.1.4 Practical difficulties in determining exchange rates
      • 5.1.4.A Dual rates
      • 5.1.4.B Suspension of rates: temporary lack of exchangeability
      • 5.1.4.C Suspension of rates: longer term lack of exchangeability
  • 5.2 Reporting at the ends of subsequent reporting periods
  • 5.3 Treatment of exchange differences
    • 5.3.1 Monetary items
    • 5.3.2 Non-monetary items
  • 5.4 Determining whether an item is monetary or non-monetary
    • 5.4.1 Deposits or progress payments
    • 5.4.2 Investments in preference shares
    • 5.4.3 Foreign currency share capital
    • 5.4.4 Deferred tax
    • 5.4.5 Post-employment benefit plans – foreign currency assets
    • 5.4.6 Post-employment benefit plans – foreign currency plans
  • 5.5 Change in functional currency
  • 5.6 Books and records not kept in functional currency
• 6 USE OF A PRESENTATION CURRENCY ...