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    Foreign Currency Consolidation

    Example: Consolidation with Foreign Currencies

    by Silvia

    Last update: 10/2022 (video added to the end of the article) In today’s world, most groups spread their activities abroad and logically different members of the group operate in different currencies. Is the consolidation process of combining the financial statements of two (or more) companies…

    Consolidation and Groups, Financial Statements, Foreign Currency, IFRS Videos 78
    IAS 21 Functional Currency

    028: How to determine the functional currency when a company deals with more currencies?

    by Silvia

    Imagine you sell in EUR, make purchases in INR and your loans are denominated in USD… what is your functional currency in this case? Learn here!

    Foreign Currency 17

    What closing rate to apply when more rates are available?

    by Silvia

    What closing rate shall you select under IFRS when more rates are available at the reporting date (mid rate, sell rate, buy rate)? Find out here…

    Foreign Currency, IFRS Videos 25

    How to make a change in functional currency

    by Silvia

    Some time ago I was a part of an audit team auditing the financial statements of a medium-sized manufacturing company. When we received the trial balance of that client, we spotted something strange: There were loads of transactions in a foreign currency and resulting impact…

    Financial Statements, Foreign Currency 31
    Foreign Currency Cash Flows Consolidated

    How to Make Consolidated Statement of Cash Flows with Foreign Currencies

    by Silvia

    Did you know that many groups prepare their consolidated cash flow statement completely incorrectly? And, if you are well-experienced accountant, you can actually spot the faulty numbers instantly when you look to the statement of cash flows. Sadly, this wrong method is often taught in…

    Consolidation and Groups, Financial Statements, Foreign Currency, IFRS Videos 52
    The Best of IFRSBox

    The Best of CPDbox 2015

    by Silvia

    The year-end is coming closer and closer; the closings have already started to push their pressure on all of us, the exam season approaches and we live the busy lives. I know that this part of the year is usually the second busiest for any…

    Current Assets, Financial Instruments, Foreign Currency, Revenue Recognition 67
    Monetary or non-monetary?

    Monetary or Non-Monetary?

    by Silvia

    When you need to translate your items denominated in foreign currency to your own functional currency, then there’s one little problem: Is that item monetary or non-monetary? If you determine the nature of your item incorrectly, it can lead to totally wrong presentation in the…

    Financial Instruments, Foreign Currency, Most popular, Non-current Assets 283
    PrepaymentsForeignCurrencyIFRSL

    Accounting for Prepayments in Foreign Currency under IFRS

    by Silvia

    Transactions in foreign currencies are sometimes a nightmare. Obviously, we are trading with each other, our own currencies are different and foreign exchange rates are jumping up and down constantly. We are all aware of basic rules with regard to selection of appropriate exchange rate…

    Financial Instruments, Foreign Currency 101
    IAS 21 Foreign currencies

    IAS 21 The Effects of Changes in Foreign Exchange Rates

    by Silvia

    These days people use about 180 currencies world wide! The truth is that  we, people, don’t want to stay isolated.  We love to sell, buy, import, export, trade together and do many other things,  all in foreign currencies! When you look at the business world,…

    Foreign Currency, IFRS Videos 234

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    Categories

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