→ 7 - Foreign Currency In Individual Financial Statements. →开始学习 /下载MP3 Flashcards

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问题		答案
Functional currency definition. IAS 21: The effects of changes in foreign exchange rates. 开始学习		'the currency of the primary economic environment where an entity operates' IAS 21
6 factors used to determine a functional currency are as follows: # 开始学习		Financing \| Receipts \| Purchases and costs \| Sale prices \| Competitive forces. \| Regulations FR-PS-CR
A subsidiary that operates with LITTLE AUTONOMY will most likely have the same functional currency as ...? 开始学习		as its parent.
Overseas transactions rules. 5 开始学习		1. Initial transaction. 2. If settled - translate the settlement to functional currency using spot rate. 3. If unsettled - treatment depends on if the overseas item is monetary. 4. If monetary - Retranslate at the closing rate of exchange. 5. In non-monetary - Do not retranslate. However, if held under a FV model, the FV will need to be translated when determined.
Monetary items examples. 3 开始学习		Receivables, payables, loans.
Non-monetary items examples. 2 开始学习		PPE, inventories intangible assets

7 - Foreign currency in individual financial statements.