Wiley Interpretation and Application of IFRS Standards

23 FOREIGN CURRENCY

• Introduction
• Definitions of Terms
• Scope, Objectives and Discussion of Definitions
  • Functional Currency
  • Monetary and Non-Monetary Items
• Foreign Currency Transactions
• Translation of Foreign Currency Financial Statements
  • Translation of functional currency financial statements into a presentation currency
  • Translation (remeasurement) of financial statements into a functional currency
  • Net investment in a foreign operation
  • Consolidation of foreign operations
  • Taxation effect
• Guidance Applicable to Special Situations
  • Non-controlling interests
  • Goodwill and fair value adjustments
  • Exchange differences arising from elimination of intragroup balances
  • Different reporting dates
  • Disposal of a foreign operation
  • Change in functional currency
  • Reporting a Foreign Operation’s Inventory
  • Translation of Foreign Currency Transactions in Further Detail
• Disclosure
• Hedging
  • Hedging a Net Investment in a Foreign Operation or Foreign Currency Transaction
    • Hedges of a net investment in a foreign operation
    • Hedges of foreign currency transactions
  • Currency of Monetary Items Comprising Net Investment in Foreign Operations
• Examples of Financial Statement Disclosures
• US GAAP Comparison

INTRODUCTION

International trade continues to become more prevalent, and “multinational corporations” (MNC) now comprise not only the international giants which are household names, but also many mid-tier companies. Corporations worldwide are reaching beyond national boundaries and engaging in international ...