IAS 21Chapter 1Lesson 1
IAS 21: purpose, scope and basic vocabulary
Step 1 of 6Learning objectives
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IAS 21 explains which rate to use and where to record the differences when an entity deals with foreign parties; this lesson sets the scope of the standard and the basic words (foreign currency, transaction, foreign operation).
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Learning objectives
- Place the three situations covered by IAS 21.
- Define foreign currency, a foreign currency transaction and a foreign operation.
- Spot what falls outside the scope: derivatives, hedging and cash flows.