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IFRS in your pocket is a comprehensive summary of the current IFRS Standards and Interpretations along with details of the projects on the standard-setting agenda of the International Accounting Standards Board (Board). Backing this up is information about the Board and an analysis of the use of IFRS Standards around the world.
BASIS FOR CONCLUSIONS. International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates (IAS 21) is set out in paragraphs 1–62 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB.
Under IAS 21, the management of a company needs to determine the functional currency of the company by assessing various indicators of the economic environment in which the company operates.
IAS 21. Technical Summary. This extract has been prepared by IASC Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. IAS 21 The Effects of Changes in Foreign Exchange Rates. An entity may carry on foreign activities in two ways.
IAS 21 The Effects of Changes in Foreign Exchange Rates. FUNCTIONAL CURRENCY. An entity’s functional currency is the currency of the primary economic environment in which it operates. Determine functional currency of each entity within a group - currency of primary economic environment in which entity operates. START. Primary factors.
IAS 21 The Effects of Changes in Foreign Exchange Rates provides guidance to determine the functional currency of an entity under International Financial Reporting Standards (IFRS).
IAS 21 outlines how to account for foreign currency transactions and operations in financial statements, and also how to translate financial statements into a presentation currency.
