FOREIGN CURRENCY

/Tag:FOREIGN CURRENCY

Exchange difference on payment to contractor for development on fixed assets

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 [...]

By |November 8th, 2009|OTHER IFRS|3 Comments

Conversion of foreign currency expenses with local currency

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 [...]

By |September 13th, 2009|IAS 21|3 Comments

Forex translation and cash flow statement

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 [...]

By |May 9th, 2009|OTHER|3 Comments

Foreign currency translation issue

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 [...]

By |April 30th, 2009|OTHER|5 Comments

Request for auditing standard

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 [...]

By |December 15th, 2008|AUDIT|1 Comment

Where can I find pdf copy of US GAAP and US GAAP APB?

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 [...]

By |December 15th, 2008|LOCAL GAAP vs IFRS|0 Comments

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 ...

By |December 14th, 2008|CONSOLIDATION, DOCUMENTS, IAS 2, IAS 21, IFRS|0 Comments

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...

By |December 14th, 2008|DOCUMENTS, FAIR VALUE, FINANCIAL INSTRUMENTS, IAS 16, IAS 2, IAS 21, IAS 39, IFRS|0 Comments

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...

By |August 28th, 2008|DOCUMENTS, FINANCIAL INSTRUMENTS, IAS 39|0 Comments

Articles on IAS 21

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, […]

By |August 28th, 2008|IFRS, OTHER IFRS|0 Comments

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...

By |August 28th, 2008|CONSOLIDATION, DOCUMENTS, IAS 21, IFRS|0 Comments

IAS 23 Borrowing costs – Forex diffrences

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 [...]

By |August 28th, 2008|IFRS|1 Comment

Foreign exchange loss/gain

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 [...]

By |August 28th, 2008|IFRS|0 Comments