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  • Reporting at The Ends of Subsequent Reporting Periods

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    Foreign currency transactions are translated using different exchange rates depending on whether the item is monetary or non-monetary. Monetary items use the closing rate for subsequent reporting periods, while non-monetary items use the historical rate at the transaction date, except for those measured at fair value which use the rate when fair value is determined. Exchange differences from monetary item translations are recognized in profit or loss, while the exchange component of any gain or loss from non-monetary items goes to other comprehensive income, except when the non-monetary gain or loss goes to profit or loss, then the exchange component also goes to profit or loss. When functional currency changes, translation procedures for the new currency apply prospectively from the date of change

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    Reporting at the ends of subsequent reporting periods

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    Foreign currency transactions are translated using different exchange rates depending on whether the item is monetary or non-monetary. Monetary items use the closing rate for subsequent reporting periods, while non-monetary items use the historical rate at the transaction date, except for those measured at fair value which use the rate when fair value is determined. Exchange differences from monetary item translations are recognized in profit or loss, while the exchange component of any gain or loss from non-monetary items goes to other comprehensive income, except when the non-monetary gain or loss goes to profit or loss, then the exchange component also goes to profit or loss. When functional currency changes, translation procedures for the new currency apply prospectively from the date of change

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    © All Rights Reserved
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    5 views1 page

    Reporting at The Ends of Subsequent Reporting Periods

    Uploaded by

    tera
    Foreign currency transactions are translated using different exchange rates depending on whether the item is monetary or non-monetary. Monetary items use the closing rate for subsequent reporting periods, while non-monetary items use the historical rate at the transaction date, except for those measured at fair value which use the rate when fair value is determined. Exchange differences from monetary item translations are recognized in profit or loss, while the exchange component of any gain or loss from non-monetary items goes to other comprehensive income, except when the non-monetary gain or loss goes to profit or loss, then the exchange component also goes to profit or loss. When functional currency changes, translation procedures for the new currency apply prospectively from the date of change

    Copyright:

    © All Rights Reserved
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    of 1

    .

    Reporting at the ends of subsequent reporting periods:

    - Foreign currency monetary items shall be translated using


    the closing rate

    - Non-monetary items are measured in terms of historical


    cost in foreign currency using the exchange rate at the date
    of the transaction.

    - Non-monetary items that are measured in fair value in a


    foreign currency shall be translated using the exchange
    rates at the when the fair value is measured. Recognition of
    exchange differences

    - Exchange differences arising on the settlement of monetary


    items or on translating monetary items at rates different from
    those at which they were translated on initial recognition, it
    will be recognized to profit or loss.

    - Gain or loss on a non-monetary item is recognized in OCI,


    an exchange in component of that gain or loss shall be
    recognized in OCI.

    - When a gain or loss on non-monetary item is recognized in


    PNL, any exchange component of that gain or loss should
    be reported to PNL. Change in functional currency

    . - When there is a change in functional currency, the entity shall apply


    the translation procedures applicable to the new functional
    currency prospectively from the date of change.

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