UK GAAP 2019

Chapter 27Foreign currency translation

• 1 INTRODUCTION
  • 1.1 Background
• 2 COMPARISON BETWEEN SECTION 30 AND IFRS
  • 2.1 Reclassification of foreign exchange differences on disposal of a foreign operation
  • 2.2 Unrealised exchange gains on intercompany balances
• 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 on intragroup balances
    • 3.7.4 Monetary items included as part of the net investment in a foreign operation – ...