Purpose of the standard

Learning objectives

• Explain the objective of the Standard: foreign currency transactions and foreign operations, and translation into a presentation currency.L1

Normative references

• IAS 21 §1Objective: to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.
• IAS 21 §2Principal issues: which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The standard covers both the accounting for foreign currency transactions and activities and the translation of financial statements into a presentation currency.L1