Statement of Financial Position
At the end of the financial year, the SOFP of the overseas subsidiary will be translated using the closing rate (i.e. the exchange rate at the date of the balance sheet)
For opening net...
When a company enters into transactions in a currency that's different to its functional currency (i.e. a foreign exchange transaction), the results of these transactions should be translated and recorded in the company’s accounting records...
When a subsidiary is disposed of, and the results were translated using the closing rate method, the cumulative exchange difference which has been taken to reserves (because they were unrealised) becomes realised. Under IAS...
When preparing financial statement a company must determine its functional and presentation currencies.
The functional currency is the currency of the primary economic environment where the entity operates, in most cases this will be the...
Another mind map! This time it's for IAS 21 The Effects of Changes in Foreign Exchange Rates.
The IFRS mind maps are available by clicking here.