Companies operating internationally may have transactions in foreign currencies, invest in foreign operations, and/or present their financial statements in a foreign currency. And changes in foreign currency exchange rates impact how such transactions are presented in the IFRS financial statements. IAS 21 The Effects of Changes in Foreign Exchange Rates prescribes how to include foreign currency transactions and foreign operations in the IFRS financial statements of an entity and how to translate financial statements into a presentation currency. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. Confused? Don’t be. We’ve got you covered! In this CPE-eligible, eLearning course (1.0 CPE), besides getting you comfortable with foreign currency exchange rates, we cover the main concepts and requirements within IAS 21 including: Determining the functional currency, accounting for foreign currency transactions, and translating the results of …
