Learning outcomes

What will you learn?

The objective and scope of IAS 21 in accounting for foreign currency transactions and foreign operations.

How to determine functional and presentation currencies.

The difference between monetary and non-monetary items and their translation methods.

Recognition and presentation of exchange differences in profit or loss and other comprehensive income.

The accounting treatment for changes in functional currency and translation of foreign operations.

Practical implications of exchange rate fluctuations on financial statements, including recent amendments such as lack of exchangeability.

Course content

Participants

Who is this course designed for?

Accountants and finance professionals working with multinational entities.

Auditors analyzing financial statements with foreign currency transactions.

CFOs and financial controllers responsible for group consolidation and reporting.

Consultants and advisors assisting clients with IFRS compliance.

Pre-requisites

Necessary Qualifications

Background in accounting, finance, or business administration.

Basic understanding of financial statements and accounting principles.

Prior exposure to financial reporting or audit practices is recommended.

Familiarity with IAS/IFRS standards is helpful but not mandatory.

Course Content

What will you study?

Objective and scope of IAS 21

Key definitions: functional, presentation, and foreign currency

Initial recognition and subsequent measurement of foreign currency transactions

Reporting foreign exchange differences in financial statements

Translation of foreign operations and consolidation considerations

Change in functional currency and its impact on reporting

Disclosure requirements under IAS 21

Amendments and practical application challenges