About this Course

Companies need to identify their functional currency appropriately to achieve the objectives of FRS 21 The Effects of Changes in Foreign Exchange Rates. If the functional currency is incorrectly determined, the translation gains and losses will not reflect the effects of an entity’s transaction exposure to foreign exchange fluctuations. This workshop explains the concept of the functional currency and the principles in FRS 21. It considers the determinants of the functional currency with reference to an entity’s economic environment and product and process markets. The workshop also explains the translation objectives and processes in FRS 21.

Programme Outline 

• Understanding the principles and determinants of the functional currency in FRS 21
  
• Determining the functional currency in the light of the economic environment of an entity
  
• Differences between the functional currency and the presentation currency
  
• Translation objectives in FRS 21
  
• Exposed items in the translation process
  
• Translation of foreign currency transactions and balances of a stand-alone entity
  
• Translation of financial statements from an entity’s functional currency to a different presentation currency
  

Intended For

A Foundation to Intermediate level programme suitable for Practising Accountants, Non-Practising Accountants and Audit Professionals.

Training Methodology

Lecture style, with Exercises/Case Studies

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