New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 25 Foreign currency translation

1 Introduction

   1.1 Background

2 Comparison between Section 30, previous UK GAAP and IFRS

   2.1 Key differences between Section 30 and previous UK GAAP

   2.2 Key difference between Section 30 and IFRS

3 Requirements of Section 30 for foreign currency translation

   3.1 Definitions

   3.2 Scope

   3.3 Summary of the approach required by Section 30

   3.4 Determination of an entity’s functional currency

       3.4.1 Intermediate holding companies or finance subsidiaries

       3.4.2 Branches and divisions

   3.5 Reporting foreign currency transactions in the functional currency of an entity

       3.5.1 Initial recognition

       3.5.2 Identifying the date of transaction

       3.5.3 Using average rates

       3.5.4 Dual rates or suspension of rates

       3.5.5 Reporting at the ends of the subsequent reporting periods

       3.5.6 Treatment of exchange differences – monetary items

       3.5.7 Treatment of exchange differences – non-monetary items

       3.5.8 Determining whether an item is monetary or non-monetary

       3.5.9 Deposits or progress payments

       3.5.10 Investments in preference shares

       3.5.11 Assets and liabilities arising from insurance contracts

   3.6 Change in functional currency

   3.7 Use of a presentation currency other than the functional currency

       3.7.1 Translation to the presentation currency

       3.7.2 Functional currency is that of a hyperinflationary economy

       3.7.3 Exchange differences ...