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IAS 21Chapter 3Lesson 1

The functional currency: indicators and determination

Step 1 of 6Learning objectives

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The functional currency is not chosen by preference: it is deduced from primary then secondary indicators, examined together; mixed cases and foreign operations call for judgement.

35 minNot started

Learning objectives

  • List the primary and secondary indicators of the functional currency.
  • Apply the determination approach without stopping at a single indicator.
  • Handle mixed cases and foreign operations through judgement, without a numeric threshold.

In this lesson

Original teaching content: it paraphrases the standard without reproducing it and does not replace the official text.

Contents — IAS 21 — The Effects of Changes in Foreign Exchange Rates

  1. 1 · Not startedPurpose, scope and exclusions0 / 1 lesson
  2. 2 · Not startedBasic definitions0 / 1 lesson
  3. 3 · Not startedDetermining the functional currency0 / 1 lesson
  4. 4 · Not startedInitial recognition of foreign currency transactions0 / 1 lesson
  5. 5 · Not startedMeasurement at reporting dates0 / 1 lesson
  6. 6 · Not startedRecognition of exchange differences0 / 1 lesson
  7. 7 · Not startedNet investment in a foreign operation0 / 1 lesson
  8. 8 · Not startedChange of functional currency0 / 1 lesson
  9. 9 · Not startedChoice of presentation currency0 / 0 lessons
  10. 10 · Not startedTranslation into a presentation currency0 / 2 lessons
  11. 11 · Not startedHyperinflationary economies0 / 1 lesson
  12. 12 · Not startedForeign operations in consolidation0 / 1 lesson
  13. 13 · Not startedDisposal of a foreign operation0 / 1 lesson
  14. 14 · Not startedTax effects0 / 0 lessons
  15. 15 · Not startedDisclosures0 / 1 lesson
  16. 16 · Not startedExchangeability of a currency0 / 1 lesson
  17. 17 · Not startedAdvance consideration in foreign currency (IFRIC 22)0 / 0 lessons
  18. 18 · Not startedBoundaries with other standards0 / 0 lessons