It prescribes how to include foreign currency transactions and foreign operations in the financial statements.
It prescribes how to translate financial statements into a presentation currency.
It defines what foreign exchange rates to use.
It provides guidance on how to report the effect of changes in exchange rates in the financial statements.
Monetary or non-monetary? In this article, you'll learn which items in the balance sheet are monetary and non-monetary, with a couple of examples.
Accounting for advances in foreign currencies - this article explains how various types of foreign currency advances are treated, with numerical examples.
How to make a change in a functional currency - this article explains when to make a change and contains numerical example of how to do it.
Example: Consolidation with Foreign Currencies - learn how to consolidate when a parent and a subsidiary use different functional currencies.
How to Make Consolidated Cash Flow Statement with Foreign Currencies - when you have a parent and a subsidiary with different functional currencies, please do NOT start making consolidated cash flow statement from consolidated balance sheet. Learn here why and how to do it.
Which closing rate to apply? - in this podcast I explain which currency rate to use for year-end translation when more rates are available.
How to capitalize exchange rate differences on your loan as a borrowing cost?
How to determine a functional currency when a company deals with more currencies?