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Articles tagged with: FOREIGN CURRENCY

OTHER IFRS »

[8 Nov 2009 | 3 Comments | 2,427 views]

we have a contract for development of a fixed assets, as per the contract:-
Total Contract amount =  260 Million AED
We have to pay this amount in Euro that is already fixed as per the contract it is 4.49 AED per Euro
whatever is the rate prevailing currently doesnt matter bcoz it has been already fixed in contract,
so my concern is exchange loss on payment will be added to the value of fixed Assets or
will have to transferred to P&L A/c

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IAS 21 »

[13 Sep 2009 | 3 Comments | 3,734 views]

Dear
I am in a financial organization. Our company pays some expenses (e.g. salary, fees) with foreign currency. In every month we prepare P/L account with local currency. We also perform currency exchange and change our sale/bye rate according to central bank and also booked exchange gain/loss determining mid rate. So, in which rate we convert such foreign curreny expenses with local currency to show in the P/L account monthly as well as yearly? As currency rate is variable, so at year end which rate will be applicable to prepare yearly …

OTHER »

[9 May 2009 | 3 Comments | 8,521 views]

Dear all,
I have to translate the financial statements from local currency (not a hyperinflationary economy) in EUR according IAS 21 (EUR is presentation currency) for a stand-alone company (no consolidation needed) for the first year of activity (no openings).
Income statement is translated at the average exchange rates (sum of each month separately).
Balance sheet is translated at the closing rate (end-of-the-year exchange rate) for all items (including fixed assets and equity).
First case:
The equity contains the net profit/loss (already translated at the average exchange rates). To obtain the balance it result a “translation …

OTHER »

[30 Apr 2009 | 5 Comments | 7,940 views]

Dear Colleagues,
I have a practical case regarding the subject for a not-for profit organization based in USA having operations in several African countries.Most of functional currencies of the field operations are their respective local currencies (Neither USD nor hyper Inflationary).Funds are advanced to these places from HQ periodically and will be converted to the functional currency for operational and regulatory reason. At the end of the year, Its field offices prepare financial statement on local currencies.The translation to reporting currency becomes difficult for those field office banks don’t have Ask price for USD, it doesn’t …

AUDIT »

[15 Dec 2008 | One Comment | 2,648 views]

Dear all,

Can you share me the international auditing standard document. Thanks

Danella,I double checked after the comment below, and I agree with Hemant. IAS 21.28 explicitly states that gains/losses on forex should be recognized in P&L. The forex is not attributable to the asset but to the financial liability.http://www.ifac.org/IAASB/
My apologies for my earlier answer.
Regards,
Jeroen

 
 

http://www.ifac.org/Store/Category.tmpl?Category=Auditing%2C%20Assurance%20%26%20Related%20Services

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LOCAL GAAP vs IFRS »

[15 Dec 2008 | No Comment | 5,695 views]

Do anyone know where I can download copy of US GAAP and US GAAP APB?

Thanks Dessanti for your answer
Our position is less than 1%, we bought in the active market Euro a
little position to speculate in market price.
The IAS 39 don’t include equity investment as applicable financial
asset to recognized the gain or loss in foreign exchange in the
current period income statement, as its explain as follows:
Available-for-sale financial assets (AFS)…. … Fair value changes on
AFS assets are recognised directly in equity, through the statement of
changes in equity, except for interest on …

CONSOLIDATION, DOCUMENTS, IAS 2, IAS 21, IFRS »

[14 Dec 2008 | No Comment | 3,287 views]
PPP

Hi

 
Please give me your opinion on forex loss on Assets. Do you capitalize it or do expense it to the foreign loss

This e-mail message and any attachment hereto are confidential information intended for a specific addressee and purpose.  If you …

DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 16, IAS 2, IAS 21, IAS 39, IFRS »

[14 Dec 2008 | No Comment | 7,492 views]
Equity investments AFS is a non-monetary items?

Hi all,

We need some guidance in connection to apply the rules explained in IAS 21 related to if investments AFS in capital instruments is a non-monetary item. 
Theses equity investments were made without the intention of take control on any compa…

DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 39 »

[28 Aug 2008 | No Comment | 2,045 views]
Foreign Currency

Dears

I have a question regarding bank a/c in foreging currency, as we have one bank account in euro, where as we are maintaing our books in local currency (other than euro).
Every month we there is difference in exchage rate, and we closing our books…

DOCUMENTS, FINANCIAL INSTRUMENTS »

[28 Aug 2008 | No Comment | 2,027 views]
Hedging on Foreign Currencies

Dear friends,

it happens that I am an employee of a manufacturing company who is making hedging for foreing currencies transactions.
Do you happen to have documentation on the bookings that I have to make in the balance sheet/profit&loss account?…

IFRS, OTHER IFRS »

[28 Aug 2008 | No Comment | 2,523 views]

Sir,
I am a Trainee Student of Chartered Accountancy of Pakistan (ICAP) and doing articles in Anjum Asim Shahid Rahman Chartered Accountants Karachi.
I have started my study of Mod-E and need of comprehensive article on different IAS so Please
mail me a soft copy of IAS-21 (The Effects of Changes in Foreign Currency).
Thankful to u for this favor.
Regards,

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CONSOLIDATION, DOCUMENTS, IAS 21, IFRS »

[28 Aug 2008 | No Comment | 2,485 views]
Difference of exchange

Dear All ,
Now we are part of an International Company : so we have to report monthly figures of our 35 units , our 35 units are in different country so different  currency ,
We are Consolidating all the units in The Holding and we report one figur…

IFRS »

[28 Aug 2008 | One Comment | 3,987 views]

As per the amended IAS 23, all borrowing costs on qualifying assets should be capitalised (no option to expense).
Does exchange differences on foreign currency loans qualify as borrowing costs to be capitalised?
Best regards
Allan

Hi Allan

To my understanding any positive/negative FX difference is expensed directly to the P&L.

Regards,
Marc

The change to IAS23 will come into force on Jan 2009. So far that is only allowed alternative, the benchmark tre
atment is to expense.
The exchange differences on foreign currency should be included to assets under construction and therefore capitalised. After capitalisation of qualifying asset any exchange …

IFRS »

[28 Aug 2008 | No Comment | 2,619 views]

Dear all,
I cannot find how can I book the fx loss, gain into profit and loss
account. Should I book it as other cost/revenue or financial
cost/revenue?

Taczmann

Book it as a separate component of financial expenses and income, so the
categories should be:
Interest income
Interest expense
Foreign currency gains (losses)
Net financial results = sum
Kind regards,
Henk

Dear Judit
In practice most of the company showing FX charges in  Financial
charges.
With Best Wishes and Regards

Thank you for your answer, however in Austrian GAAP, the f/x loss is
shown as other cost and f/x gain on a/p or a/r is shown as other
revenue. …