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|name=IAS 21 Effects of Foreign Exchange Rates | |name=IAS 21 Effects of Foreign Exchange Rates | ||
|parent=t:IFRS | |parent=t:IFRS | ||
| − | |sort= | + | |sort=10021 |
|level=1 | |level=1 | ||
|keywords=IAS, IFRS, Standard, Financial, Accounting, FOREX, Exchange Rates, Currency, Conversion | |keywords=IAS, IFRS, Standard, Financial, Accounting, FOREX, Exchange Rates, Currency, Conversion | ||
|description=IAS 21 prescribes how an entity should account for foreign transactions and convert currencies | |description=IAS 21 prescribes how an entity should account for foreign transactions and convert currencies | ||
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An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. IAS 21 Effects of Foreign Exchange Rates prescribes how an entity should:
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.
An entity’s functional currency is the currency of the primary economic environment in which the entity operates (i.e. the environment in which it primarily generates and expends cash). Any other currency is a foreign currency.
IAS 21 Effects of Foreign Exchange Rates is Copyright: IFRS Foundation
| ID | Name | Level | x |
|---|---|---|---|
| IFRS | International Financial Reporting Standards | 0 | IFRS |
| IAS21 | IAS 21 Effects of Foreign Exchange Rates | 1 | IAS21 |