Foreign Currency Transactions And Translation (ISA 24)
CPD Hours: 2
Price: R450.00
Foreign Currency Transactions And Translation (ISA 24)
Presenters : Caryn Maitland CA(SA)
Overview
Foreign currency transactions and translation are integral components of financial reporting in a globalised economy. Entities often engage in transactions denominated in foreign currencies or operate foreign subsidiaries, which brings complexities in recognition, measurement, and presentation in financial statements. Understanding the principles of IAS 21 – The Effects of Changes in Foreign Exchange Rates is therefore essential to ensure compliance, accuracy, and transparency in financial reporting.
Join Caryn Maitland CA(SA) as she unpacks the key principles and practical application of IAS 21. Caryn will guide attendees through the process of recording foreign currency transactions, translating financial statements of foreign operations, and accounting for exchange differences, supported by real-world examples and illustrative case studies.
Learning objectives
Attending this webinar will equip you with the following skills:
• Understand the core principles of IAS 21 and its application in financial reporting.
• Identify and record foreign currency transactions accurately in accordance with IFRS.
• Translate financial statements of foreign operations into the reporting currency.
• Recognise and disclose foreign exchange differences appropriately.
• Apply professional judgement when dealing with complex foreign exchange scenarios.
Content
The webinar will cover the following topics:
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• Introduction to IAS 21 – The Effects of Changes in Foreign Exchange Rates
o Objectives and scope of the Standard
o Key definitions and terminology (functional currency, presentation currency, exchange rate)
o Overview of the principles governing foreign currency transactions and translation• Accounting for Foreign Currency Transactions
o Initial recognition and subsequent measurement
o Exchange differences and their treatment in profit or loss
o Monetary vs non-monetary items – key distinctions and implications
o Practical examples and common pitfalls in practice• Translation of Financial Statements of Foreign Operations
o Determining the functional and presentation currency
o Translation methods and consolidation considerations
o Recognition of translation differences in Other Comprehensive Income (OCI)
o Reclassification and disposal of foreign operations• Disclosure Requirements and Practical Considerations
o Required disclosures under IAS 21
o Common audit findings and review considerations
o Practical insights and illustrative examples
