IAS 21Chapter 4Lesson 1
Recognising a foreign currency transaction, advances included
Step 1 of 9Learning objectives
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At the transaction date we translate at the spot rate; an average rate may serve as an approximation; an advance in foreign currency (IFRIC 22) has its own transaction date.
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Learning objectives
- Record a foreign currency transaction at the spot rate on the transaction date.
- Recognise when an average rate may serve as an approximation.
- Determine the transaction date of an advance paid or received in a foreign currency (IFRIC 22).