New UK GAAP and Foreign Exchange transactions. Some useful information and new valuation techniques to be aware of.
FRS102 affects many things and Section 30 sets out the rules on Currency Conversion.
FRS 102 states that
An entity can conduct foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency
Entities will have a Functional Currency (a concept also used in IFRS) and it allows translation into a Presentation Currency
Reporting at the end of the subsequent reporting periods
30.9 At the end of each reporting period, an entity shall:
(a) translate foreign currency monetary items using the closing rate;
(b) translate non-monetary items that are measured in terms of historical cost in a foreign currency using the exchange rate at the date of the transaction; and
(c) translate non-monetary items that are measured at fair value in a foreign currency using the exchange rates at the…
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