거래 익산시: 외환 재평가 ifrs

IAS 플러스.

개요.

IAS 21 환율 변동 효과 외화 거래 및 재무 제표 운용 방법을 설명하고 재무 제표를 표시 통화로 환산하는 방법을 설명합니다. 기업은 영업 활동이 이루어지는 주요 경제 환경에 따라 기능 통화를 (필요한 경우 사업장별로) 결정해야하며, 거래일에 현물 환율로 현물 환율로 외화 거래를 기록하는 것이 일반적입니다.

IAS 21은 2003 년 12 월에 재발행되어 2005 년 1 월 1 일 이후에 개시하는 회계 연도에 적용된다.

IAS 21의 역사.

관련 프로젝트.

외화 번역.

IAS 21 - 외환 거래 및 선급 고려.

IAS 21 - 순 투자를 헷지하고있다.

기존 국제 회계 기준 개선 (2001-2003)

Deloitte는 Deloitte Touche Tohmatsu Limited, 보증이 제한된 영국의 민간 회사 ( "DTTL"), 회원사 네트워크 및 관련 기관 중 하나 이상을 지칭합니다. DTTL과 각 회원사는 법적으로 독립된 독립적 인 단체입니다. DTTL ( "Deloitte Global"이라고도 함)은 고객에게 서비스를 제공하지 않습니다. DTTL 및 회원사에 대한 자세한 설명은 deloitte / about을 참조하십시오.

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회계.

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인터넷의 첫 페이지.

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IFRS 하의 외화 선급 계정.

외화 거래는 때로는 악몽입니다.

분명히, 우리는 서로 거래하고 있으며, 우리 자신의 통화는 다르며 환율은 끊임없이 위아래로 뛰고 있습니다.

우리는 적용 할 적절한 환율의 선택과 관련하여 기본 규칙을 알고 있습니다.

더 복잡한 거래에 올 때, 규칙을 적용하게 열심히 itвЂ ™ s. 종종 나는 하나의 동일한 질문을 받는다 :

실비아, 우리는 사업과 관련된 기계의 생산 및 인도 계약을 맺었으며 우리는 첫 번째 선금을 외화로 지불했습니다.

IFRS에 따른 외화 선급 계산의 정확한 계산은 무엇입니까? IFRS는 환율 변동 효과를 어떻게 처리합니까?

저가 itвЂ ™ s가 전부 검정 또는 백색 아닙니다 여기에서 당신에게 그것을 시키자.

이는 더 많은 요인, 특히 특정 선불 결제의 성격에 달려 있습니다.

이유와 방법을 설명해 드리겠습니다. 그리고 예제에서 두 가지 시나리오를 설명하겠습니다.

규칙은 무엇을 말합니까?

번역 방법 외화 금액을 귀하의 기능 통화로 환산하는 방법; 외국 운영 в ™ ™의 재무 제표를 표시 통화로 변환하는 방법.

일년 중 외화로 거래를 기록하면 외화 금액이 귀하의 기능 통화로 환산됩니다.

표준 IAS 21은 다음을 규정한다.

처음에는 거래일에 유효한 현물 환율로 모든 외화 금액을 기능 통화로 다시 계산해야합니다. 그 후 (초기 승인 후 â € "), 각 마감 또는보고 일에 다음을 재 계산해야합니다. 보고 일에 환율을 사용하여 외화로 표시된 모든 화폐 성 항목. 외화로 표시된 모든 비 화폐 성 항목은 역사적 환율을 사용하여 역사적 원가로 계상되었습니다 (거래일 기준). 외화로 표시된 모든 비 화폐 성 항목은 공정 가치가 결정된 날의 환율을 사용하여 공정 가치로 평가되고 있습니다.

지금, LetвЂ ™ s는 그것을 무너 뜨린다.

다음 두 가지 중요한 측면을 평가해야합니다.

1. 거래일.

ItвЂ ™ s 모든 명확한 처음에, 당신은 번역을위한 거래일에 반점 환율을 사용해야한다.

그러나 여기서 거래의 날짜는?

그것은 거래가 IFRS에 따라 최초로 인식 할 수있는 날짜입니다.

물론 다양한 항목에 대해 다를 수 있습니다. 예를 들면 다음과 같습니다.

금융 부채의 경우 : 기업이 계약의 계약 조항의 당사자가되는 경우 유형 자산 : 자산의 미래 경제적 효익이 기업에 유입되고 비용이 신뢰성있게 측정 될 가능성이 높을 때.

이것은 매우 직설적으로 들리 겠지만 거래 날짜를 결정할 때 약간의 어려움이 발생할 수 있습니다.

예를 들어 â € "1 일에 상품을 받고, 3 일에이 상품에 대한 인보이스를 받고, 4 일에 이러한 상품에 대해 비용을 지불하십시오. â €"여기 거래의 날짜는 얼마입니까? 1, 3 또는 4 일에 어떤 환율을 적용해야합니까?

WeвЂ ™ ll는 우리의보기에서 이것을 포함하고, 다만 읽는 계속된다.

2. 선지급의 성격.

마감 환율로 후속 환산과 관련하여 IAS 21은 화폐 성 항목과 비 화폐 성 항목을 구분한다.

화폐 성 항목은 결산 환율을 사용하여 환산됩니다. 비 화폐 성 항목은 재 번역되지 않지만 원래 또는 과거 환율로 유지됩니다.

고정 자산에 대한 선불 결제가 금전 또는 비 금전 거래입니까? 음, 금전 또는 비 금전 수 있습니다!

차이를 만드는 한 가지가 있습니다.

고정되거나 결정 가능한 통화 단위 수령을 수령 할 의무 또는 의무.

선불은이 기능을 탑재 할 수도 있고 제공하지 않을 수도 있으며, 선불을 개별적으로 또는 신중하게 평가해야합니다.

특정 계약서 вЂ를 읽으십시오. 선불 결제는 환불받을 수 있습니까?

환불의 확률은 얼마입니까 예금 вЂ ™를 환급의 thereвЂ ™ s 절?

대부분의 경우, 고정 자산 또는 모든 재화 / 용역을 구입하기위한 선급금은 거의 환불되지 않으며 확률도 매우 낮습니다.

따라서 기계에 대한 선불 결제는 대부분의 경우 비 화폐 성 항목이므로 결과적으로 연말 결산 비율을 사용하여 재 계산하지 않아야합니다.

다음 예는 비 화폐 성 자산으로 분류 된 기계 구입에 대한 선금을 계산하는 방법을 보여줍니다.

예 1 기계 구입을위한 선금.

귀하의 기능 통화는 EUR이며, 귀하는 미국 공급자가있는 기계 생산 계약을 체결했습니다.

기계의 총 비용은 USD 100 000이며, 귀하는 2 부분으로 지불하기로 동의했습니다.

지불 1 : 계약서 서명 후 미화 30,000 달러; 지불 2 : machineвЂ ™ s 납품 다음에 USD 70 000.

관련 날짜 및 환율은 다음과 같습니다.

이러한 거래를 언제 어떻게해야합니까?

20 2 월 2 일 : 계약서 서명.

20X1 년 2 월 4 일, 귀하는 계약을 체결했습니다.

그러나 인식 기준을 충족시키지 않아 IAS 16 유형 자산에 따라 인식 할 수있는 자산은 없습니다.

마찬가지로, 일부 금융 부채를 인식해야하는지 여부를 판단해야합니다.

대부분의 경우 확정 약정과 관련된 금융 부채는 상품이 인도 될 때까지 (또는 인코 텀즈에 따라 선적 될 때까지) 인식되지 않으며 소유권의 위험과 보상이 소멸됩니다.

결론 : 20X2 년 2 월 4 일에는 회계 처리가 없습니다.

20X1 월 2 일 : 첫 번째 지불액이 USD 30 000입니다.

20X1 년 2 월 11 일에 IAS 16에서 기계를 인정하기위한 인식 기준은 여전히 충족되지 않습니다. 기계가 없다는 것을 기억하십시오.

이 시점에서, 당신은 기계를 제어 할 수 없으며 결과적으로 엔티티에 흐르는 미래 경제적 이익이 발생할 가능성이 없습니다.

나는 많은 기업들이 비슷한 관행을 채택했다는 것을 알고있다. "그들은 단지 첫 번째 지불을 직불 PPE로 예약한다. 기계 및 신용 현금. 기계가 없으므로 정확하지 않습니다.

그러면 20X1 년 2 월 11 일에 올바른 항목은 무엇입니까?

PPE에 대한 선불 자산 : EUR 22 403 (미화 30,000 / 1.3391)

크레딧 캐쉬 : EUR 22 403 (USD 30,000 / 1.3391)

실제로는 상황에 따라 환율을 사용합니다.

EUR 계정에서 USD 30,000을 지불 한 경우 : 은행에서 거래를 재 계산 한 환율을 사용합니다. USD 계정에서 3 만 달러를 지불 한 경우 : 공식적으로 발음 된 일부 요금 (예 : 유럽 중앙 은행의 이자율.

20X1 년 12 월 31 일 :보고 일.

이 경우 기계에 대한 미화 30,000 달러의 선불은 비 금전입니다.

이것은 재 계산이 없음을 의미합니다. 귀하의 재무 상태 보고서에는 22,403 유로의 선행 이자율로 선결제가 표시됩니다.

1 월 15 일 20X2 : 기계 배송 및 소유권 양도.

이것은 정확히 기계를 제어 할 수있는 날짜입니다. 이 시점에서 IAS16에 따른 인식 기준이 충족되며 기계를 귀하의 자산, 플랜트 및 장비로 인식 할 수 있습니다.

그러나 나머지 70,000 USD의 인보이스는 20X2 년 1 월 20 일에 도착했습니다.

어떤 환율을 적용해야합니까?

거래일.

이 경우, 거래일은 20X2 년 1 월 15 일이며, 기계가 인도되고 인도가 금전적 책임을지게됩니다.

결과적으로 귀하의 항목은 다음과 같아야합니다 :

직불 자산 œ 기계 (PPE) : EUR 51 448 (USD 70 000 / 1.3606)

신용 부채 공급자 : EUR 51 448 (USD 70 000 / 1.3606)

이것은 IAS 21 규칙의 매우 엄격한 적용이지만 letвЂ ™는 좀 더 실용적입니다.

인보이스 발행일에 환율을 적용하는 것이 허용 될 수 있습니다. 특히 인보이스 발행시 약간의 지연이있는 경우에는 특히 그러합니다.

그러나, thereвЂ ™ s 외국환에있는 약간 큰 변화, 당신은 machineвЂ ™ s 납품 일을 정말로 지켜야한다.

1 월 15 일 20X2 : 선불 결제는 어떻게됩니까?

machineвЂ ™ s 납품 일에, 당신은 기계를 인식하고 그것의 비용에 그것을 측정 할 필요가있다.

machineвЂ ™ s 비용의 부분은 contractвЂ ™ s 서명 후에 급여받는 당신의 선불이다. 기계 비용은 비 화폐 성 항목이며, 우리는 아무것도 재 계산하지 않고 역사적인 비율로 유지합니다.

따라서 아무 것도 다시 계산하지 않고 항목을 입력하십시오.

직불 자산 œ 기계 (PPE) : EUR 22 403.

신용 자산 œ PPE 선불 : EUR 22 403.

이제 귀하는 вЂ "를 주장 할 수 있습니다. 그러나 기계가 귀하의 재무 제표에 표시되는 날짜는 납품 기일이므로 납품시 적용 가능한 환율로 미화 100,000 달러를 다시 계산해야합니다.

몇몇 회사는이 처리를 적용합니다, 그러나 itвЂ ™ s는 진짜로 정확하지 않고 거래의 진실하고 공정한 전망을 선물합니다.

진실은 machineвЂ ™ s 납품에, 인식 기준은 충족되고 당신은 1 점에 기계를 인식 할 필요가있다이다.

그러나 비용의 측정은 다른 문제입니다.

발생한 실제 비용은 첫 번째 지불 일에 환율로 변환 된 USD 30,000이며, 인도 일에 환율로 번역 된 USD 70,000입니다.

30,000 달러 선불은 더 이상 USD 자산이 아닙니다. 그것은 귀하의 EUR 자산입니다. 왜?

이런 방식으로 보도록하십시오. 대부분의 비 금전적 자산은 귀하가 귀하의 계좌에서 그들을 인식하는 순간 вЂњ 외국 화폐 자산이되는 것을 중지합니다. 따라서, 당신 donвЂ ™ t에는 당신의 책 вЂ에있는 USD 30 000의 자산 (선불)가 대신있다, 당신은 EUR 22 403의 자산 (선불)이있다.

20X2 년 2 월 2 일 : 인보이스가 지급됩니다.

이것은 분명해야합니다. 지불 일에 현물 환율로 지불금을 기록하고 차이는 당기 손익으로 인식합니다.

귀하의 항목은 다음과 같습니다 :

직불 부채 - 공급 업체 : EUR 51 448 (USD 70 000 / 1.3606)

크레딧 캐쉬 : EUR 51 860 (USD 70 000 / 1.3498)

차변 P / L â € "412 (51 860 이하 51 448)로 외환 손실

모든 회계 항목의 요약은 다음과 같습니다.

예 2 & # 8211; 장기 대여를위한 보증금.

회사 (기능 통화 : EUR)는 시카고에서 12 개월 동안 부동산을 임대하려고하며 보증금 USD 10,000을 지불합니다. 보증금은 임대 기간 만료시 환불됩니다.

관련 날짜 및 환율은 다음과 같습니다.

선불 결제가 환불되기 때문에 상황은 약간 다릅니다. 이는 화폐 자산입니다.

지불 할 때 지불 날짜의 현물 환율을 사용하여 번역합니다.

그런 다음 20X1 12 월 31 일 마감 환율을 사용하여 환산하고 외환 차이를 손익으로 인식해야합니다.

HereвЂ ™ s 회계 입장의 개요 :

WhatвЂ ™ s 예금, 선불 또는 외국 통화에있는 전진과 관련있는 당신의 자신의 회계 연습? 그리고이 기사가 도움이 되었습니까?

기사 아래에있는 의견에 대해 알려주세요. 이 정보를 사용할 수있는 사람을 알고 있다면 & # 8211; 고맙습니다!

2015 년 2 월 5 일 업데이트 :이 주제와 관련하여 LinkedIn에 대한 훌륭한 토론이있었습니다. 나는이 주제가 매우 혼란스럽고 우리 중 많은 사람들이 주변에 몇 가지 의문점이 있기 때문에 여러 가지 질문에 답했습니다. 관심이 있으시면 여기를 읽어주십시오.

무료 보고서 Top 7 IFRS 실수.

당신이 피하는 + IFRS 미니 코스!

회사가보고에서 얻은 7 가지 IFRS 실수를 알아보고 쉽게 피하는 방법!

귀중한 IFRS 미니 코스도 받게됩니다.

무료 보고서를 받으려면 아래 양식을 작성하십시오.

100 % 프라이버시와 스팸 없음, 우리는 약속합니다.

72 코멘트 :

이 멋진 기사를 작성해 주셔서 감사합니다.

다음 질문에 답해 주시겠습니까?

한 회사가 미국 기반 자회사의 주당 1 달러를 주당 1 달러로 투자 할 경우 모회사는 다음 두 가지 경우에 마감 /보고 일에 별도 계정에서이 주식의 가치를 재 계산해야합니다.

1. 셰어는 활성 시장에서 거래됩니다.

2. 자회사의 주식에는 활성 시장이 존재하지 않습니다.

코멘트 주셔서 감사합니다. 귀하의 회사의 기능 통화가 USD가 아니라고 가정합니다 (그렇지 않으면 묻지 않을 것입니다).

정의에 따르면, 주식은 고정 된 또는 미리 정해진 금액의 통화를받을 권리가 없기 때문에 비 금전적 자산입니다.

그러나 재 계산은 재무 제표에서 이러한 주식을 어떻게 분류했는지에 달려 있습니다.

금융 상품입니까? 그렇다면 어떻게 분류 했습니까? 공정 가치 (손익 또는 OCI를 통해)가 & # 8211; 그렇다면 공정 가치를 정한 날짜에 유효한 환율로이 주식을 재 계산하십시오. 이 경우, 환율 차이는 공정 가치로 재평가의 일부입니다.

그러나 주식을 원가로 유지하는 경우 (어떤 이유로 든) 공정 가치가 아닌 비 화폐 성 자산이므로 재 계산하지 않습니다.

IFRS 관련 이슈를 매우 간단하고 흥미롭게 단순화 시켰기 때문에 회계에 대한 관심이 높아졌습니다.

너는 길고 건강한 삶을 줘.

주식 또는 채무에 대한 투자의 경우, Fx 차액 인식 장소 (P / L 또는 OCI)는 IFRS 9에 따른 상각 후원가, FVTPL 또는 FVOCI 및 IAS 39에 따른 AFS의 HTV, FVTPL에 따라 달라집니다.

물론, 하지만 이것은 내가 위에서 쓴 것과 모순되지 않습니다.

이 교육적인 노력에 실바에게 감사드립니다. 회사는 매월 자체 관리 계정을 준비하기 때문에 월별로 다른 통화로 청구하는 임대 소득을 발생시킵니다. 이것은 화폐 성 항목입니까 아니면 금전적입니까? 어떤 환율을 사용해야합니까? 보고 날짜에이 항목을 다시 번역해야합니까? 나는 세입자가 반드시 구내로 이사하기 전에 반드시 지불 할 필요는 없다고 덧붙여 야합니다. 그들이 결국 지불하면 어떻게 대우합니까?

이 문제는 그렇게 쉬운 일이 아니며 실제로 많은 의견이 있습니다. 따라서 IFRS Foundation은 IFRS를 의제에 추가하고 결론을 내릴 것입니다. 실제로, 치료법은 국가에 따라, 개체별로, 국가마다 다릅니다.

관심이 있으시면 2014 년 11 월에 IFRS Foundation에서 발행 한이 보고서를 읽어보십시오. (링크가 작동하지 않으면 브라우저에 복사하십시오 : media. ifrs. org/2014/IFRIC/November/IFRIC-Update-11-10-2014.html#E)

고맙습니다. Silvia 님, 선불 결제에 대한 질문이 있습니다. 언제 할당 했습니까? IFRS를 검토 한 결과, 구체적으로이 사실을 발견하지 못했고, IAS 1만이 프레젠테이션의 중요성에 대해 언급했으며,

예를 들어, Periel에 대해 선불 결제를 한 경우 인벤토리에 대해 선급금을 보유하고 있다면 인벤토리로 표시해야하며, IFRS와 맞습니까?

불행히도이 문제에 대한 구체적인 지침이 없기 때문에 일반적인 IAS 1 규칙을 적용해야합니다.

선불 결제가 장기적이므로 (12 개월 내에 환불받을 것으로 기대하지 않으며 하루에 PPE로 전환 할 예정 임), PPE & # 8211; PPE 인수를위한 선불 결제와 같은 이것은 또한 우리 자신의 법률이 요구하는 것입니다. 저에게는 장기 융자, 미수금 등이 아닌 PPE 바로 옆에 제시하는 것이 더 적절합니다. 좋은 하루 되세요! 에스.

기사 주셔서 감사합니다.

2014 년 12 월 Chf 송장을 지불하기 위해 2014 년에 구입 한 CHF 은행 계좌를 사용하여 2015 년에 지출 한 CHF 송장을 2014 년에 예약 했으므로 약간 다른 질문이 있습니다.

우리는 GBP를 영국 회사로보고 있습니다.

송장은 2015 년 달력 구독입니다.

2015 년에 gpb의 비용을 수정하기 위해 chf에서 인보이스를 지불하기 위해 2014 년 10 월에 chf를 구입했습니다.

2014 년 12 월에 인보이스를 결제했습니다.

우리는 은행의 CHF를 사용하여 CHF 인보이스를 계산하고 2014 년 12 월말에 chf 은행을 사용하여 선불로 인보이스 비용을 책정했습니다. 이 비용은 2015 년에 균등하게 배분됩니다. 선불 비용은 CHF 은행에서 지불 한 CHF 비용과 같습니다.

효과적으로 chf 인보이스를 예약하기 위해 평균 요율을 현물 요율의 프록시로 사용했습니다.

인보이스 결제를 위해 구입 한 CHF는 지정된 이자율로 예약되었으며 은행에서 구입했습니다.

우리는 공급 업체 계정에서 인보이스를 지불하기 위해 현물 환율의 대용으로 평균 환율을 사용하여 공급 업체를 상환하는 것을 설명했습니다.

chf 은행 및 공급 업체 계정의 모든 fx는 P & L로 이동 한 다음 선지급으로 저축되어 선지급 비용이 chf를 구입하는 비용이었습니다.

회사는 항상 이런 식으로 설명했지만 ifrs에 이런 종류의 상황에 대한 안내는 거의없고 조언을 원합니다.

당신의 견해는 무엇입니까?

환율 변동으로 인한 것이 아닌 비 화폐 성 자산 (IAS 16 하의 PPE)에 손상 차손을 기록 할 수 있는가?

ASC 255-10-55-1에 따라 고정 가격 계약과 관련이없는 공급 업체에 대한 진보는 특정 금액의 재화 나 용역에 대한 청구가 아닌 총 금액에 대한 크레딧을받을 권리로 간주됩니다. 화폐 성 항목으로 간주됩니다. 반대로, 고정 가격 계약과 관련하여 공급자에게 환급되지 않는 선급금은 미래의 재화 나 용역에 대한 실질 청구권이며 과거 환율을 사용하여 기록되기 때문에 비 화폐 성 항목으로 분류됩니다.

위의 내용이 US GAAP과 IFRS의 차이점이라고 생각하십니까?

좋고 유용한 기사를 가져 주셔서 감사합니다.

선급금 잔액에 대한 질문을하고 싶습니다. 우리는 또한 고객으로부터 외화로 수령 한 선급금을 재평가할까요?

내 의견으로는, 결론에 도달 할 때까지, 나는 이러한 진보가 환불 가능한지 여부를 평가할 것입니다. 환불이 가능하고 환불받을 가능성이 있다면 예, 환불 해 드리겠습니다. 그러나 환불되지 않는 경우, 나는 그 금액을 금전적 책임으로 간주하지 않고 재평가하지 않을 것입니다.

대단히 감사합니다. 나는 오랫동안 대답을 찾고있었습니다.

슈퍼 유용한 기사 주셔서 감사합니다. 그러나, 나는 질문이있다. 기계 비용이 $ 100,00이며 지불 일정은 다음과 같습니다.

20x1 월 2 일 : 선불 1 : 30,000 달러

1 월 15 일 20X2 : 결제 2 : 5 만 달러 (기계 배송)

2 월 15 일 20X2 : 최종 지불액 : $ 20,000.

이 경우 기계에 대한 회계 처리는 무엇입니까? 20X2 년 1 월 15 일에 전체 PPE 금액을 100,000 달러로 기록합니까 아니면 PPE $ 80,000 만 청구합니까?

미리 감사드립니다.

당신은 전체 비용과 미지급 금액을 채무해야합니다.

안녕하세요, 신속한 답변에 감사드립니다.

따라서 기계가 배송 된 날짜에 PPE 전액을 인출해야합니까? 또한 20X1 년 2 월 11 일에 선불 한 금액 인 3 만 달러를 신용 한도? 20X2 년 2 월 15 일에 2 만 달러를 지불하면 그 날에만 송장을받을 수 있습니까?

나는 인보이스를받은 후에 만 책임 / AP가 기록 될 것이라고 생각했기 때문에 다소 혼란 스러웠습니다.

미리 감사드립니다.

사실 PPE를 받으면 어떤 책임이 있습니다. 그러나 조금 실용적이십시오. & # 8211; 나는 그 사이의 공간이 그다지 크지 않으면 일이 정말로 중요하다고 생각하지 않는다.

안녕하세요. 다른 질문을 부탁드립니다.

Dr Prepaid PPE와 Cr Accounts payable right 같은 것은 없습니다. 어떤 사람들은이 & # 8220; AP & # 8221; IFRS에 명시된 책임 기준을 충족시키지 못했지만 나에게 그것은 괜찮지 만.

부채는 과거 사건으로 인하여 발생하는 현재의 의무이며, 그 정산으로 인해 경제적 효익을 담보하는 자원의 유출이 초래 될 것으로 예상됩니다. & # 8211; 따라서이 경우 과거의 사건은 PPE 서명 및 송장을 구매하기위한 계약 일 수 있습니까?

고마워요!

그러나 문제는 실제 현금을 지불하지 않으면 선불 PPE를받지 못한다는 것입니다. 실제로 선급금에 대한 인보이스는 인위적으로 자산과 부채를 모두 증가시키기 때문에 인식되지 않습니다. 어쨌든, 과거 이벤트 + 청구서로 계약을 맺었지만 지불하지 않을 경우 페널티 S에 대한 책임을 인정해야합니다.

도움이되는 기사를 가져 주셔서 감사합니다.

나는 PPE의 평가 모델과 OCI에서 인정 된 이득을 사용합니다.

공정 가치가 결정되는 시점에 환율을 사용하여 공정 가치로 평가 된 외화로 표시된 모든 비 화폐 성 항목에 적용됩니까?

그렇지 않다면 제게 사례를주십시오.

예를 들어, 외화 선결제가 PPE는 아니지만 비용 인 경우, 예를 들어 비 화폐 성 항목이므로 12 월 20 일에 1 월 20 일과 21 일에 2 개의 임대 비용을 지불 했으므로 재 계산하지 않습니다 12 월 20 일과 21 일 (보고 일)이 끝나면 1 월 20 일과 22 일 (렌탈 비용 / 전납 선불)에 임대 비용을 기록하면 비용이 과거 환율로 표시됩니다 (12 월 20 일 & # 215; 1), 맞습니까?

대단히 감사합니다 !!

회계 및 회계에 대한 명확한 설명에 감사드립니다.

고객으로부터 투어 패키지를 위해 사전을 수령했을 때의 금전적 항목입니까.

안녕하세요 Akshan, 선불 결제로, 그것은 맑은 아니며 신중하게 모든 단일 선불을 평가해야합니다. 예 : 여행 패키지의 환불이 환불되지 않는 경우 환불되지 않습니다. 자세한 내용은 ifrsbox / monetary-non-monetary / S. 를 참조하십시오.

사례가 AUC (건설중인 자산) 인 경우 이것은 분명합니다.

인벤토리 조달 (무역 상품)은 어떨까요?

재고 비용에 적용된 선금의 역사적 비율입니까?

굉장한 기사. 지금부터 나는 심장 팬이 죽는다. 우르 (Ur) 기사는 내가 더 많은 연구를하도록 동기를 부여했다.

여러 인보이스에 대한 공급 업체에 대한 선급금 외화 취급에 대해 묻고 싶습니다. 단일 청구서와 관련이없는 지불 일 때, 이 공급 업체 계좌에 차변 잔액이있는 경우가 있습니다. 공급 업체와 가족 관계를 맺고 신뢰합니다. 예를 들어 인쇄, 포장 및 앰프에 대한 많은 단계가 필요한 완제품을 공급하기 위해 ; 재료 그 자체 등으로 우리는 대부분 선불 금액 (단일 송장과 관련이 없음)을 지급하여 완성품을 생산할 수 있습니다.

나는 어떤 환율을 사용하는지 혼란 스럽다. 평균 요율을 어떻게 사용할 수 있습니까?

선불 보험과 같은 선불 비용이라면 금전적 인 항목입니까? 통화 변환의 이익 / 손실에 어떤 영향을 줍니까?

선불 비용은 비 금전적 자산 인 무형 자산으로 기록 될 수 있습니다.

선명도를 가져 오는 위대한 기사를 보내 주셔서 감사합니다. 위와 반대되는 그림으로 다른 글을 쓸 수 있다면 좋을 것입니다. (진료 예약 / 입금 처리).

저는 법률 사무소에서 일하고 클라이언트 계정은 제쳐두고 다음과 같은 것을 알고 싶습니다.

1. 비 화폐 성 자산 / 부채를 연말 환율로 환산하지 않더라도 현물 환율로 거래 (외환) 통화로 인식하거나 추적 할 수 있습니까?

2. 법률 회사의 경우 WIP Dispense (Unbilled Disbursements라고도 함)가 진행되며, 여러 가지 거래 통화가있는 여러 항목으로 구성됩니다. 나의 현재 관행은 이러한 WIP 자산을 역사적인 비용 가치로 인식하는 것입니다. 대신 화폐 성 자산으로 인식되고 연말에 번역 대상이되어야합니까? 여기에 문제가 있습니다 : 우리는 현지 통화 지출뿐만 아니라 외환 지출을해야합니다 : 그 다음에 이러한 지불에 대한 청구서가 (특히 연말 이후에) 현지 통화 또는 외환으로 이루어질 지 여부를 알지 못합니다.

3. 우리는 또한 본질적으로 학점 또는 미적용 영수증이거나 문제에 대해 사전 예치라고 부르는 일반 또는 오피스 보관자의 개념을 가지고 있습니다. G / L에서 이것은 WIP Disbursements Asset 계좌의 크레디트입니다.

위의 게시물을 무시하십시오. 위의 게시물을 다음으로 대체하고 싶습니다.

위대한 기사 주셔서 감사합니다. 아마도 당신은받은 진보의 치료에 대한 다른 글을 쓸 수 있습니다.

다음 문제에 당신의 두뇌가 필요합니다.

저는 법률 사무소에서 일하고 있으며 클라이언트 문제에 대해서는 고객 계정과 사무실 계정이 있습니다. 사무실 계정에 대한 내 문제 :

1. 우리는 고객에게 외환, 현지 또는 통화 조합으로 발생할 수있는 미 지불 지급 (WIP Asset account)을 가지고 있습니다. 문제. 이 화폐는 있습니까?

2. 비 화폐 성 항목으로 간주 되더라도 거래 시간에 외환으로 발생한 외화 미지급 지출을 추적 할 수 있습니까?

3. 우리가 외환으로 발생한 외환 거래를 외환 가치로 추적하고 비 화폐 성 (연말에 환산하지 않음)으로 간주하고 연말 이후에 통화가 설정되면 외환으로 청구해야합니다. 우리가 처리 했어?

4. 우리는 고객에 대한 미래의 청구서에 적용될 외환, 현지 또는 통화 조합으로받은 예금 (일반 보유자 또는 적용되지 않은 크레딧이라고도 함)을 보유하게됩니다. 문제. 이것들은 WIP Asset 계정에 대한 크레디트입니다. 이 화폐는 있습니까?

5. 비 화폐 성 항목으로 간주 되더라도 거래 시간에 외환으로받은 외화 예납금을 외환으로 추적하는 것이 괜찮습니까?

6. 우리가 외화를받은 경우 forex 가치로 예금을 입금하고 비 금전적 (따라서 연말에 번역되지 않음)으로 간주되며 외환으로 인식되고 통화 외환 송장 (A / R)에 대해 적립되어야합니다. 결제 시간 동안 어떻게 처리할까요?

안녕 감사합니다.

질문이 하나 있습니다. 회사가 부동산 매매업자이고 건설을 위해 선급금을 납부 한 다음 대출금을 선불금으로 책정합니다. 그들은 기능 통화가 아닌 다른 통화로 선급금을 수령합니다. 그들은 환율을 적용하고 미지급 수익에 대한 교환 이득 손실을 계산해야합니까?

제조 원료를 구매하는 공급 업체에 대한 환불되지 않는 선급금은 어 떻게 전체 송장 가치보다 적은 금액을 지불 할 권리를 회사에 부여한다는 사실을 감안할 때 화폐 또는 비 화폐 성 항목입니까? 적은 화폐 단위!

질문이 하나 있습니다. 공급 업체와의 신용 잔액 처리 방법은 무엇입니까? 주문 비용은 미화 50,000 달러이며, 이미 주문한 주문에 대해서는 공급 업체 50,000으로, 미래 주문에 대해서는 25,000을 송금합니다. 회계 연도 말 회사는 아무런 신규 주문도하지 않았다. 50,000은 비 화폐 성 항목 인 번역본에 대한 선급금이 아니며, 대차 대조표 일까지 주문을하지 않은 약 25,000 대에 해당한다. 공급 업체와의 신용 균형. 화폐 성 항목으로 마감 환율을 사용해야합니까?

우리는 여행 산업에 종사하고 있으며 종종 항공사들에게 돈을 지불하고 있습니다. 매달 말 이러한 선급금을 금전적 자산으로 인식 할 수 있습니까?

나는 이러한 진보가 대부분의 경우처럼 비 금전적이라고 생각합니다. 서비스는 다음과 같습니다 (그리고 당신에게 되돌아가는 진전의 상환이 아닙니다). 에스.

귀중한 답변에 감사드립니다.

설명해 주셔서 감사합니다. IвЂ ™ ve에는 뒤에 오는 문제가있다 :

회사 1은 회사 2의 자료를 주문하고 선불 (비 화폐 성 상품이므로 재평가해서는 안됨)을 수행합니다. Both companies belong to the same owner.

Each company uses a different functional currency, the transaction happens in the reporting currency of the holding both companies belong to. Over time (with changing exchange rates) the balances of those two companies donвЂ™t match anymore. How can this difference be handled?

I would just like to ask what if the company pays an insurance policy with a premium of 50,000, for example on June 1 but the coverage period only starts on June 15. How do you record it on both dates?

As you have explained that prepayment against capital items are primarily non-monetary on the pretext that they are non refundable in nature. However, if such advance is secured in nature e. g. against 100% bank guarantee which can be invoked in case of failure of delivery of PPE and amount can be recovered. In this case, can such advance be treated as monetary item and can be translated at closing rate??

Rosh, again, what is the probability of failure of delivery of PPE? I think that the bank guarantee does not change a character of the advance – it is still non-monetary. S.

Very critical and interested topic.

You’re highly capable in delivering and summarizing ideas.

Thank you for your lesson and explain. it is very apparent.

I would like to ask whether prepayments of service fees is non monetary asset, what rate to use, and for the amortization of this asset what rate should I use. 감사.

Dear Jarra, it is very similar as for any asset you acquire. In most cases, these prepayments are non-monetary as there is no right to receive cash. S.

are dividends paid after oci or before.

Is advance given to agents for making payments of expenses on our behalf to be considered as monetary asset?

it depends on the type of the advance. Sometimes it’s monetary and sometimes it’s non-monetary, depending on the terms agreed between the two parties (especially right of refund, its probability, etc.). I would say that in your case, it is non-monetary, because you are expecting some services to be delivered (and not cash back). Please, read more about it here. S.

is post employment benefit asset monetary item?

This is really an awesome article, thanks a million.

But my concerned is the advance or first payment made. There is no reference to the supplier account to whom the payment was made. The entries was; Debit Asset-prepayment PPE and Credit Cash. Whereas the final payment was booked in supplier account with the effect that only that portion of the total Asset value shown in supplier account in the book of the company.

In the final analysis, the supplier account in the company book does not give the total value of the Asset supplied to or purchased by the company.

Can you please, clarify this.

I would be grateful to get your advice in dealing with the scenario where we have prepaid to rent an office premises overseas in USD for 1 year, and are expensing the monthly charges in USD, however our reporting currency is GBP, and due to the fluctuation of currency over the period the GBP value at the end of the year is distorted.

Is it allowable to revalue the prepayment balance for the year end financial statements even though this is a non-monetary asset?

In some other examples the closing prepayment has a positive balance in USD, but a negative value in GBP.

your balance in GBP should not be negative. It should equal the balance of the remaining rent to be spend in USD translated by the historical rate.

In fact, when you were expensing monthly charges in USD, you should have translated these charges by the historical rate GBP/USD, not the actual rate at the time of expense. The reason is that this prepayment is a non-monetary asset (no right to receive cash, but service) and your real expense in GBP is exactly what you paid at the time of making the prepayment. S.

We are in the US and Foreign Company prepaid for royalties, though in the contract the money is refundable. Each month the royalties are calculated and subtracted from the prepay.

Should the monthly royalty payments be determined using the historic currency rate or should they be calculated using the current currency rate?

Thanks for your help!

Caitlin, this is really unsolved area in IFRS. In general, I would treat it as non-monetary item, based on the probability of their refund. S.

Can you please help me on the below?

The reporting currency is USD.

We purchase something and the vendor issues its invoice in EUR.

When we record the liability we use the official EUR/USD rate of the local bank of issue.

Some days later, when we pay off the liability, we evaluate the payment on Reuters daily EUR/USDrate.

There is know linkage between Reuters and the local bank of issue.

Can we follow this practice (evaluating the liability and the payment based on completely different financial institutes’ FX rates as a mix) or we should record the selected financial institute as FX rate source in our Accounting Policy?

I have reviewed IAS 21 but cannot find a clear instruction.

Please, when you answer, insert the relevant IFRS regulation reference as well.

미리 감사드립니다.

Sorry, ‘there is no linkage’ is the correct expression.

IAS 21 does not state precisely what rate you should use – whether Reuters, or the local bank’s rate. However, IAS 21 in par. 26 says that you should use the rate at which the future cash flows of the relevant transaction will be settled. As a result, using the local bank’s rate for recording the liability is OK, but I have doubts about translating the payments by the Reuters rate, because the payments are mostly settled using the bank’s commercial rates, too. S.

Thank you for the answer.

We are an Online Travel Agent and acting like an agent according to; ifrsbox/ifrs-revenue-principal-agent/

Our revenue is the commission on trips (no package deals created by our company), price is determined by the actual operator.

I assume we have the focus on non-monetary customer prepayments and operator prepayments, both in foreign currencies (other than reporting currency EUR). We are allowed to recognize revenue once there is no cancellation option for the customer any more.

How to deal with the received prepayments and payments made to the final operators?

Example: (note: company has USD and EUR bank account)

Day 01 – customer prepayment 1.000 USD – fx to EUR = 1:1.

Day 10 – prepayment by us to Operator 3.000 THB – fx to EUR= 1:30.

Day 20 – prepayment by us to Operator 20.000 THB – fx to EUR= 1:25.

Day 30 – cancellation date, on date of Revenue recognition:

According to IFRIC 22 (effective 01-01-2018) you should take the fx on the actual “transaction date”. By this, it means that we will have the following result to be determined on Day 30:

Revenue customer part: 1.000 / 1 = EUR 1.000.

Revenue operator part: – 3.000 / 30 = – EUR 100.

Revenue operator part: – 20.000 / 25 = – EUR 800.

Total revenue result in the P&L to be taken / shown: EUR 100,-

No FX result should be shown in the report, based on IFRIC 22.

Is that the right conclusion? Or do you have a different opinion on this? 지원해 주셔서 감사합니다.

Silvia? Hope you will find some time to support / challange my confidence in the case above….. Will be highly appreciated. Thnx in advance!

Thanks Silvia, I need to know exactly is advances from clients for proved services or goods in monetary or not (reevaluated at the end of period or not)

talking the possibility to canceled the contract and refund the amount of advance to client.

이 기사를 가져 주셔서 감사합니다. 이것은 매우 유익합니다.

But I just want to ask if the monthly restatement the monetary amount necessary? For example, our functional currency is in Yen, and we have a Cash in Bank in USD? Is it necessary to restate our USD to Yen monthly using the month end rate?

Your reply will be very helpful to us and this will be highly appreciated.

Hi Jack, well, IFRS do not prescribe monthly restatement. Technically speaking no, you don’t have to do it – but, if you prepare monthly reports under IFRS, then yes, you have to do it, because otherwise your reports would not be IFRS compliant.

Hi Silvia, thank you for your reply.

I have two questions:

1) Why are non refundable prepayments non-monetery? Is it because no cash element is present in the transaction.

2) For Monetary & Non-Monetary transactions, is cash an essential factor because there could be settlements/realization made in other than cash too such as buy backs by issuing fresh equity.

I would be grateful if you may answer at the earliest.

기사를 가져 주셔서 감사합니다.

I have a question about revaluation of prepaid expenses. The scenario involves prepayments for IRU contracts (indefeasible right of use). When it comes to IRU contract, usually the customer is making one large prepayment in the begging of the contract for obtaining right of use of dark fiber line for a long period (10-15 years).

Our functional currency is EUR, but on some occasions, the prepayments are made in USD.

A basic scenario is when the advance is paid in the beginning involving one total amount. For example, we pay an advance of USD 10 million for 10 years IRU contract. Here we have advance of USD 10 million, equal to EUR 8.5 million (randomly selected fx rate USD 1.176/EUR). The prepayment is not refundable and as such I assume that the advance should not be revalued at each year end.

In this case we will recognize an annual expense of EUR 850 k.

However, for some contracts, the payments are made with few installments, rather than having one lump payment in the beginning.

The same scenario as above – 10 years IRU contract amounting to USD 10 million (the amount is not refundable). The payment schedule is as follows:

In the beginning of year 1, we pay USD 4 million.

In the beginning of year 2, we pay USD 4 million.

In the beginning of year 3, we pay USD 2 million.

In this case, for each payment, we have different fx rate for USD/EUR.

Could you share your thoughts about the second example. Should we revalue the advances at the year end. Further, how to estimate what EUR amount we should recognize as expense each year?

미리 감사드립니다.

very interesting question. In this case, I would not revalue it either, because this is still non-monetary advance (no right to receive cash). As for the expense in EUR, I would estimate it using weighted average method. Actually, there’s no guidance about this specific case in IFRS, so you need to develop your own methods. Simply, in the year 1, you have no choice than use the historical rate of the 1st payment. In the end of the year 2, you can estimate the weighted average of the remaining 3 mil. from the 1st payment and 4 mil. from the 2nd payment and translate with that rate. You get the point. Alternatively, maybe FIFO method would be acceptable, too. Use the rate of payment 1 for the expense in the years 1-4, rate of payment 2 for the expense in the years 5-8 and rate of payment 3 for the expense in the years 9-10. 희망이 도움이! S.

Thank you, Silvia, for the swift reply. It was very helpful.

Post a Reply.

최근 게시물.

Sometimes, the things can happen behind your bac.

When I was an audit freshman, my least favorite .

If you invest your savings to the purchase of so.

Buy one, get one free. Discounts on future pur.

In my last article I tried to outline the strate.

가입 확인을 위해받은 편지함을 확인하십시오.

IAS 21 환율 변동 효과

The truth is that we, people, donвЂ™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, youвЂ™ll see that business go global in two ways: they either have individual transactions in foreign currencies, or when they grow bigger, they often set up foreign operations (separate business abroad).

또한 환율은 1 분마다 변경됩니다. 그렇다면이 통화 구성에 약간의 조직을 도입하는 방법은 무엇입니까? ThatвЂ™s why there is the standard IAS 21 The Effects of Changes in Foreign Exchange Rates.

What is the objective of IAS 21?

The objective of IAS 21 The Effects of Changes in Foreign Exchange Rates is to prescribe:

How to include foreign currency transactions and foreign operations in the financial statements of an entity; and How to translate financial statements into a presentation currency .

In other words, IAS 21 answers 2 basic questions:

What exchange rates shall we use? How to report gains or losses from foreign exchange rates in the financial statements?

Functional vs. Presentation Currency.

IAS 21 defines both functional and presentation currency and itвЂ™s crucial to understand the difference:

Functional currency is the currency of the primary economic environment in which the entity operates. It is the own entityвЂ™s currency and all other currencies are вЂњforeign currenciesвЂќ.

Presentation currency is the currency in which the financial statements are presented.

In most cases, functional and presentation currencies are the same.

However, an entity can decide to present its financial statements in a currency different from its functional currency вЂ“ for example, when preparing consolidation reporting package for its parent in a foreign country.

Also, while an entity has only 1 functional currency, it can have 1 or more presentation currencies, if an entity decides to present its financial statements in more currencies.

You also need to realize that an entity can actually choose its presentation currency , but it CANNOT choose its functional currency. The functional currency needs to be determined by assessing several factors.

How to determine functional currency.

The most important factor in determining the functional currency is the entityвЂ™s primary economic environment in which it operates. In most cases, it will be the country where an entity operates, but this is not necessarily true.

The primary economic environment is normally the one in which the entity primarily generates and expends the cash . The following factors can be considered:

What currency does mainly influence sales prices for goods and services? In what currency are the labor, material and other costs denominated and settled? In what currency are funds from financing activities generated (loans, issued equity instruments)? And other factors, too.

Sometimes, sales prices, labor and material costs and other items might be denominated in various currencies and therefore, the functional currency is not obvious.

이 경우, 경영진은 기본 거래, 사건 및 조건의 경제적 효과를 가장 충실히 대표하는 기능 통화를 결정하기 위해 판단을 사용해야합니다.

How to report transactions in Functional Currency.

Initial recognition.

Initially , all foreign currency transactions shall be translated to functional currency by applying the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

The date of transaction is the date when the conditions for the initial recognition of an asset or liability are met in line with IFRS.

Subsequent reporting.

Subsequently, at the end of each reporting period , you should translate:

All monetary items in foreign currency using the closing rate ; All non-monetary items measured in terms of historical cost using the exchange rate at the date of transaction ( historical rate ); All non-monetary items measured at fair value using the exchange rate at the date when the fair value was measured.

How to report foreign exchange differences.

All exchange rate differences shall be recognized in profit or loss , with the following exceptions:

Exchange rate gains or losses on non-monetary items are recognized consistently with the recognition of gains or losses on an item itself.

For example, when an item is revalued with the changes recognized in other comprehensive income, then also exchange rate component of that gain or loss is recognized in OCI, too. Exchange rate gain or loss on a monetary item that forms a part of a reporting entityвЂ™s net investment in a foreign operation shall be recognized: In the separate entityвЂ™s or foreign operationвЂ™s financial statements: in profit or loss ; In the consolidated financial statements: initially in other comprehensive income and subsequently, on disposal of net investment in the foreign operation, they shall be reclassified to profit or loss .

Change in functional currency.

When there is a change in a functional currency, then the entity applies the translation procedures related to the new functional currency prospectively from the date of the change.

How to translate financial statements into a Presentation Currency.

기업이 기능 통화와 다른 표시 통화로 재무 상태를 표시하는 경우, 그 규정은 기업이 비 초 인플레이션 경제로 운영되는지 여부에 따라 달라집니다.

Non-hyperinflationary economy.

When an entityвЂ™s functional currency is NOT the currency of a hyperinflationary economy, then an entity should translate:

All assets and liabilities for each statement of financial position presented (including comparatives) using the closing rate at the date of that statement of financial position.

Here, this rule applies for goodwill and fair value adjustments , too. All income and expenses and other comprehensive income items (including comparatives) using the exchange rates at the date of transactions.

Standard IAS 21 permits using some period average rates for the practical reasons, but if the exchange rates fluctuate a lot during the reporting period, then the use of averages is not appropriate.

결과로 발생하는 모든 외환 차이는 별도의 자본 구성 요소로 기타 포괄 손익으로 인식한다.

However, when an entity disposes the foreign operation, then the cumulative amount of exchange differences relating to that foreign operation shall be reclassified from equity to profit or loss when the gain or loss on disposal is recognized.

Hyperinflationary economy.

When an entityвЂ™s functional currency IS the currency of a hyperinflationary economy, then the approach slightly changes:

The entityвЂ™s current yearвЂ™s financial statements are restated first, as required by IAS 29 Financial Reporting in Hyperinflationary Economies. Comparative figures are used the same as current yearвЂ™s figures in the financial statements from previous reporting period. Only then, the same procedures as described above are applied.

IAS 21은 공개 건수도 규정하고있다. Please watch the following video with the summary of IAS 21 here:

Have you ever been unsure what foreign exchange rate to use? Please comment below this video and don’t forget to share it with your friends by clicking HERE. 고맙습니다!

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136 Comments:

hi silvia, thank you so much for this explanation. i could not understand the difference between functional and presentation currency… now it’s clear, thanks a lot.

안녕 Silvia, 이 기사 및 영상에 당신의 좋은 일을 감사하십시오. Those really helpful to understand in determing the currencies used under different circumstances. Keep up your nice work. 고마워.

The following two statements always make me confused.

결과로 발생하는 모든 외환 차이는 별도의 자본 구성 요소로 기타 포괄 손익으로 인식한다.

All exchange rate differences shall be recognized in profit or loss,

Would you please shed light on it.

Hi Ezat, I can understand your confusion, it’s not so easy. Please, as the first thing, realize what you’re translating:

- are you translating some individual transactions, like sale in foreign currency, or purchase or anything else? Are you translating these transactions to your own (functional) currency? Then any foreign currency differences go to P/L.

- are you translating the whole balance sheet and income statement to foreign currency (for the purpose of consolidation or any other purpose)? Then you’re probably translating the whole statements to presentation currency and resulting exchange difference goes to OCI.

I’ve been looking for a site that answers some queries on accounting standards explicitly! This one is excellent! I just wouldn’t post my Qs because it’s already being answered. I keep your posts for future reference.

나는 당신의 마음과 성질이이 Q들을 어떻게 관리하는지 궁금합니다.

Hoping you will not get exhausted!

May God bless what you do!

Interesting question I tell you the secret – when I have enough of these queries, I try to keep my hands and mind busy in another way. I do some needlework Embroidery All the best! S.

여보세요. If I am translating the whole if financial statements from functional to presentation currency I have two questions:

1) Assets and liabilities are translated using closing rates. Should we distinguish between monetary and non or in all cases we use closing rates?

2) what about equity? Share capital, share premium, retained earnings? Which rate is to be used?

i like your explain this ias really and i hope to get full tutorial but how i life in egypt ? can tell me the way to get all tutorial for all ifrs.

I would like to the diff between Non-hyperinflationary economy and hyper inflationary economy. 감사.

Dinesh, hyperinflationary economy is discussed in the standard IAS 29 Financial reporting in hyperinflationary economies and this standard provides guidance, too. However, the standard does not establish the absolute rate of inflation for a country to be deemed “hyperinflationary”, it’s a matter of judgement, but as a guidance: for example, if a cumulative inflation rate over 3 years is exceeding or approaching to 100%.

Hyperinflation - Your reply to Dinesh october 12,2014.

재 입력은 일반적인 가격 지수를 적용하여 이루어집니다. 대차 대조표 일 현재 이미 측정 단위에 표시된 화폐 성 항목과 같은 항목은 재 작성되지 않습니다. 기타 항목은 해당 항목이 취득되거나 발생 된 날과 대차 대조표 일자 사이의 일반적인 가격 지수의 변동에 따라 재 작성됩니다.

This statement not clear. Could you please help me understanding it more clearly. Which exchange rate should be applied for translating the foreign currency monetary items.

Thank you so much for this explanation, it help me a lot,

i have small Q, how to account for transfers between our bank accounts that one is in our functional currency and the other account is in foreign currency ,

the case i had that we earn divided and it’s deposited in the foreign currency bank account, then after sometime we transfer the monies to the our functional currency bank account?

this is more question of practicalities than the question of what’s written in IAS 21. It strongly depends on how currency issues are covered in your country. Let me give you my own situation as an example:

I am from EU and our functional currency is EUR. When some payment arrives to USD account in USD, it appears in USD on the account, but for accounting records, we need to translate this amount to EUR. In line with IAS 21, we need to use the translation rate at the date of transaction (when money arrived). In line with our legislation, that would be the rate set by the European Central Bank (ECB) at the date preceding the transaction – which is perfectly acceptable for IAS 21. In your own country, that might be different, but you should be looking at central bank rates, not commercial banks for this particular case.

Hi silva. Appreciate your effort.

Here’s what I need to know, when translating individual financial statements of a foreign subsidiary into presentation currency of the parent, will the resulting differences ( that are recognised in the separate component of equity in the individual FS ) be charged to CRE and NCI of the consolidated accounts in their respective % ?

또한 인수로 발생한 영업권의 환율 차이는 부과 될 수 있습니까?

Have an exam in 3 days!

hope it’s not too late for your exam! To reply your questions:

1) No, all the differences are presented in 1 line: CTD (currency translation difference). 그들은 쪼개지지 않는다.

2) Hmhm, I think goodwill arising on acquisition is a historical item appearing only in the consolidated financial statements, not in the separate FS of a foreign subsidiary.

On acquisition, you calculate goodwill using the actual translation rates at the date of acquisition. I just don’t like the idea of translating it by the current rate – as it’s a historical asset, but the exchange rate is grouped with all other exchange differences.

Hope it helps and good luck to your exam!

Thanks a lot Silvia.

And yes, we do translate goodwill on acquisition date and at year end closing rate (just like the rest of the assets). I think this is because if the translation is taking place for consolidation purposes only, all the elements of the financial position will be covered.

Correct, that’s what IAS 21 requires. I just don’t like it – my personal opinion. Anyway, exchange difference arising on translation of GW is a part of that OCI component “CTD”. Good luck!

Yours is the only resource that that i have found on-line that explains properly what IAS 21 is all about – thank you. but i am still having a problem understanding it 100%. I am invested in a company on the UK stock market. they are a gold mining company based in South Africa. their functional currency is ZAR and their presentation currency (for the purpose of releasing annual reports to UK shareholders) is in Sterling. their most recent P&L account states that profit-after-tax was ВЈ26m…but then then in comprehensive income it states that Foreign currency translation differences amount to ВЈ25m ! therefore almost completely wiping out reported profit.

I cannot work out what could cause foreign currency translation differences to amount to ВЈ25m and there are no notes in the annual report to explain (probably they are hoping no one will notice !) would you be kind enough to give an example or two ?

foreign currency translation difference in OCI is exactly what I refer to as “CTD” or “currency translation difference”. It is because when your company is translating its financial statements from ZAR (functional currency) to GBP (presentation currency), it uses different exchange rates for translating assets and liabilities (closing rates) and for translating income and expenses (average year rates).

You also need to realize that CTD in OCI is CUMULATIVE – it does not arise only in the current reporting year, but it is accumulating from the initial date of translating financial statements in the presentation currency.

CTD of GBP 25m is probably cumulative figure. Please try to look at previous year’s numbers and the balance of CTD. 새로 생긴 CTD가 차이점입니다. Or you can look to the statement of profit or loss and other comprehensive income – you’ll see exactly how much CTD grew in the current reporting year.

희망이 도움이됩니다! S.

Thank you Silvia yes you are correct of course, the OCI for this year is ВЈ25m and the previous year was ВЈ20m so ВЈ5m difference. Thanks a lot for your help.

I would appreciate if you could help me with following issues:

Issue for foreign currency transaction.

1. Initial Recognition.

100% advance has been released at certain rate and final invoice with material is received after for eg. two months during which different exchange rate exists. 따라서 사용 요금, 선금이 발급 된 환율 또는 실제 물품 수령일에 존재하는 요금.

2. For 100 % advance which has remained unadjusted on the date of closing, do we have to translate at the closing rate.

3. Subsequent Recognition of Liability.

Procurement of assets in foreign currency - on settlement of liability, the difference is charged to asset (if the asset is in Work in progress stage) or to gain or loss.

aaaaaa, advance payments – everybody treats that differently!

OK, but here’s my opinion:

1) If the advance payment was made for the specific asset (inventories or PPE), then do not revalue it, but simply treat a part of acquisition cost in the original FX rate of payment. The reason is that IAS 21 requires you to translate the foreign currency transaction with the rate AT THE DATE of transaction.

Now, what is the date of transaction? IFRS say that it is the day when the transaction appears for the first time in your financial statements. In this case, you start acquiring asset at the date of making prepayment.

2) Again, when it is an advance payment for the specific asset, it is non-monetary asset (as you have no right to receive cash… you are just expecting the non-monetary asset to be acquired). No revaluation.

3) IAS 16 does not permit capitalizing FX differences so to P/L.

Interestingly, and the analogue is?

But i still have that small doubt with regards to the translate the foreign currency transaction with the rate AT THE DATE of transaction. I am interpreting AT THE DATE of transaction as the date i recognize asset which i would do that when asset is actually received and not the date the advance is released , at the time of release of advance , asset is yet to be formed a such is not recognized in the books. For eg. if we had not released advance then asset would have been recognized on the rate the asset is received , so if i am to assume asset value would be recognized at the time of payment if no advance has been released.

I hope i am making sense.

예, 이해가됩니다. 그리고 나는 당신의 의심을 이해합니다. Believe me, everybody is treating that differently as there’s no specific guidance in the standards for that.

Try to look at it in a different view: what is your real cost of acquiring the asset? Your real cash out? Part of it was done when you paid the advance payment. If you translate the advance payment with the rate of invoice, then you are effectively capitalizing foreign exchange rate differences (and you should not do it).

At the date of transaction = the first time when the transaction appears in your financial statements. Sure, if you don’t pay any advance, then it is the delivery date. But if you incurred real cost (payment) before that day…

There’s a lot of discussion going on about it. 제 의견은 당신이 당신의 진짜 비용을 감수해야한다는 것입니다.

Here also I have One Doubt.

At the date of transaction = the first time when the transaction appears in your financial statements. Sure, if you donвЂ™t pay any advance, then it is the delivery date. But if you incurred real cost (payment) before that dayвЂ¦

What will be the treatment if 50% advance is Paid and 50% paid one month after delivery. Which exchange rate should be applied for recording the purchases. Here date of Transaction is 50% advance payment date.

Really confused Forex Accounting .

그 자산이 앞으로 접수되고 지불이 몇 개월 후에 이루어진다면 어떻게 될 것인가. So here also do we recognize asset two months later.

Sonam, since this discussion, I wrote an article about prepayments specifically, please refer here.

Dear Silvia, Thanks for creating and sharing these very good articles and videos. I watched the video and read the article on IAS 21 and have some query. I need to prepare individual subsidiary balance sheet and income statement on parent’s currency.

1. Do I retranslate forex gain/loss recognised in I/S in functional currency by using average rate in I/S of parent’s currency? Note, forex gain/loss include loan received from parent in parent’s currency.

2.Is it alright to recognise the gain/loss from exchange difference in retranslating net profit in closing rate in B/S and average rate in I/S as Other comprehensive income in I/S in presentation currency?

I would be really grateful if you kindly help me out on this two issues. 감사.

Thank you for these wonderful articles,

I would appreciate if you could help me in the following issue :

We have recorded one transaction in the month of Jan’15 by using the exchange rate prevailing on that date. Now we are required to reverse the transaction because it was posted inadvertently. The reversal entry should be passed in the month of March’15. Can we use the exchange rate we used while passing the original entry? Or should we use the exchange rate of March’15.

if that’s just annulation (as the transaction would have never happened), then do it with the original FX rate.

Thank you Silvia…

this is very informative. I cannot seem to find the answer here, (or anywhere), however, to an issue with our German subsidiary (parent is US based). Each month’s valuations for exchange rate are posted to the P&L, but we use an unrealized gain/loss account to do so. Our German subsidiary, though, posts all of its changes in the value of its cash bank accounts to Realized gain/loss, not unrealized. Both are hittin gthe P&L properly, so that is not a major issue. I am just trying to get an understanding whether theis is required by IFRS vs GAAP in the US which would just use unrealized gain/loss.

It is me again with tricking question… looking for a fresh view.

The Company has a contract with a constructor fixed at the local currency. 동시에이 계약에는 현지 통화가 USD에 대해 3 포인트 이상 하락할 경우 환율의 차이만큼 지급액이 증가한다고하는 조항이 있습니다. For example, total trade payable is 500 local currency (or 100 USD) at recognition and at the payment date the local currency depreciate to 60 per USD, therefore the final payment is to be made is 600 local currency.

The question is whether there is exchange loss and should it be capitalized to the constructed facility or recognized in PL.

It looks like that initially it is USD contract and no forex loss/gain is to be recognized (functional currency of the Company is USD). However if the difference is less than 3 points than no compensation is made and the forex gain is recognized on trade payable up to 3 points. Moreover, there is no mention if the local currency appreciates against USD (which did not happen in the past).

For me there is embedded derivative instrument, rather than USD Trade Payable and therefore IAS 39 applied. I am wondering whether you have different view? And how would you account for this transaction?

My South Africa branch purchases goods in USD from Japan/India.

Once supplier ship out the goods, my SA branch records liability in the books. (during this time the exchange rate ZAR to USD is say 11)

So system records liability in ZAR based on exchange rate of 11.

When the goods are actually received by SA branch, the exchange rate is 12. So while posting Goods Receipt, system identifies this difference of 1 (exchange diff) and Debit Merchandise a/c in BS and credits exchange gain account in PL. Is it correct?

Is it right to increase/decrease the inventory for exchange rate fluctuation? 제발 조언.

it depends on the terms of delivery – when the risks and rewards of ownerhip pass to your branch? And how is the initial transaction (when the supplier ships the goods) recorded? Inventories are non-monetary item and therefore, you should keep them at historical rate. The question is when the ownership passes to you – if it’s at the moment of shipping the goods, you should keep them at 11. S.

Thank you so much for your quick reply.

In this case the delivery term is FOB. So once the BL is issued, we need to recognize the liability. However goods may arrive after 1 month by which time, the exchange rate is changed. In this scenario, to which account we can charge this cost (if not merchandise). One side of the entry is clear i. e. is exchange gain/LOss to the PL. Pl advise.

In this case, the date of ownership transfer (and recognition of goods) is when the goods are loaded for transport. Since that point, it’s you who controls the goods. Therefore, you should use the historical rate of 11, also for posting the goods from goods in transit to goods in the warehouse. S.

If the fx change. is any effect on parant and subsidiary firm net profit.

A question on FX unrealized gains and losses for interco loans: we remeasure all outstanding IC BS positions using Group determined FX rates as of year end. And if we have long term loans is it possible to show these unrealized gains and losses from remeasurement in OCI as part of equity and exclude them from PNL? Under US GAAP it is allowed. But I did my research on IFRS and I can not fild an answer. As usually please help.

if you classify your loans as debt securities measured at fair value through OCI, then the foreign exchange gain/loss would be a part of fair value remeasurement and posted in OCI. This is the new category introduced by IFRS 9 and it is also covered in the IFRS Kit with example. S.

I am practicing in Nepal. Regarding the translation of Financial Statements into Reporting Currencies of parent Company the assets and liabilities were translated into reporting date exchange rate of Central bank and for translating the income statement yearly average rate has been considered. The Difference was presented in OCI. Please let me know whether this is correct? 감사.

Yes, that’s how you should translate the financial statements into the presentation currency. S.

If the Functional Currency of the Parent Company is USD and the Subsidiary is in SGD. Will a Capital injection from Parent Company in USD to the Subsidiary result in any exchange differences.

I have a question on how to determine functional currency for cost plus entity (IFRS) for entity A.

The fact pattern:

Entity A (MY)- principally involved in assembling and testing products for its immediate parent entity which is Entity B (US).

Entity A generate revenue under cost plus arrangement to Entity B under TP agreement.

Revenue is generated in USD (under cost plus model)

Direct costs is MYR (labor charges/direct materials).

based on this fact pattern, what will be the appropriate functional currency for Entity A and how to justify on the its?

Regards and thank you.

Kindly help with the treatment of exchange gains or losses in a forward contract arrangement (forward contract here is for construction of non current assets.

without knowing what the forward contract is about I can’t help really – not enough information. S.

My parent company has given a USD loan us (subsidiary ) 3 years ago and at that time they did not ask us to repay. therefore, we did not revalue the currency . But now we have to pay it. my questions are.

1. Do we need to revalue USD loan.

2. what possible way to reduce our big loss on this USD revaluation.

yes, you should have revalued this loan also in the previous periods under IAS 21. Now, clearly, you made an error as you have not applied IAS 21 properly. Therefore, I would calculate the profit or loss impact of revaluation in the previous periods and if it is significant or material, then I would make a correction in line with IAS 8.

This way, “big loss” on USD revaluation would be spread over 3 periods and a part of it would be recognized in equity as a correction of error.

Now its clear. Thank you for your great advice.

At year-end we had revalued goodwill that arised on consolidation at closing exchange rate and resulted in write-down which we have taken it to CTA in equity. Does changes in CTA balance will impact consolidated cash flow statement?

Me and my colleagues always have this arguement on whether to translate monetary items at the reporting date using “Buying” rate or “SElling” 율. I am of the argument that the rate at which i can buy the foreign currency should be used meaning the selling rate set by the bank. For example if my functional currency is USD and i need to translate EURO in to USD i should take the rate at which i can exchange USD to Euro right?

good question. Well, it depends on what’s available. In the EU, European Central Bank sets the rates for the other currencies and many companies simply use these rates, regardless the commercial rates of the bank.

However, IAS 21 in paragraph 26 states that when you have several rates available, then you should take the rate at which you would settle the liability or recover the asset at the measurement date. Practically it means – if you have USD receivable, then you use buying rate (you will receive USD and bank buys them to convert to EUR), and if you have USD liability, then you use sell rate.

어쨌든 & # 8211; you absolutely need to be consistent and use the same principles every time. 희망이 도움이! S.

Regarding the example that you gave with USD receivable, should we not use the buying rate for such an item ? Let me explain :

We have 1000 USD receivable from Debtor X. The presentation currency of our company is EUR.

USD to EUR – Buying rate : 0.75 (the bank is buying 1 USD for 0.75 EUR)

USD to EUR – Selling rate : 0.80 (the bank is selling 1 USD for 0.80 EUR)

Debtor X pays us the 1000 USD.

In the current context, I have obtained USD from Debtor X and to know the value of the USD in terms of EUR, i need to Sell this USD to the bank. This means that the bank would be Buying my USD and for each 1 USD, I would receive 0.75 EUR.

Based on that, should we not be using the bank buying rate for such a type of receivable ?

Of course, you are right! Corrected!

Thanks for your prompt reply Silvia.

I also have another question relating to the year end retranslation of balances. I’ve been browsing IAS 21 to obtain an answer to these but without success :

Upon retranslating all foreign currency monetary amounts to the presentation currency, there are gains and losses which arise.

Are all foreign exchange gains/losses accounted for as realised or unrealised ?

Could you also explain the logic behind classifiying the gains/losses as either realised or unrealised ?

when you translate to presentation currency, don’t calculate any gains or losses, simply translate. There will be difference between total assets and liabilities – this is currency translation difference presented in equity. S.

I would like to know what accounting entries would be made upon the year end translation of financial statements to the reporting currency.

Let’s take the below example :

Reporting currency of the business is USD. It has foreign debtors and creditors in EUR. Let’s assume only these 2 items to calculate the CTD at year end (31 Dec 2016).

Rate EUR to USD at 1 Jan 2016 : 1.5.

Rate EUR to USD at 31 Dec 2016 : 1.3.

Foreign debtors (EUR) at 1 Jan 2016 and 31 Dec 2016 : EUR 1000.

Foreign debtors (USD) at 1 Jan 2016 : USD 1500 (1000 x 1.5)

Foreign debtors (USD) at 31 Dec 2016 : USD 1300 (1000 x 1.3)

Foreign creditors (EUR) at 1 Jan 2016 and 31 Dec 2016 : EUR 2000.

Foreign creditors (USD) at 1 Jan 2016 : USD 3000 (2000 x 1.5)

Foreign creditors (USD) at 31 Dec 2016 : USD 2600 (2000 x 1.3)

From here on, how do we calculate the difference between assets and liabilities and how do we record the CTD as a separate component of equity at 31 Dec 2016 ?

미리 감사드립니다.

I am doing year end account for one of my client, they have an account in Euro and ending balance showing in GBB in my bookkeeping system is different if I use the actual exchange rate on the date. My understanding was the difference on exchange should reported in equity as Unrealised gain or loss the P&L. 내가 틀렸다면 나를 바로 잡아주세요.

that depends on what you’re trying to do. Are you translating foreign currency amounts to your functional currency? Then translation differences are reported in profit or loss, not equity. S.

Thank you for this. I appreciate your explanation.

Please kindly shed some light on the following.

Please for a financial statement, when you translate the bank Balances in foreign curency using the closing rate the gain or loss as a result of the translation-is it realized or unrealized?

If realized or unrealized what are the tax effect.

it’s realized (as any other foreign currency difference). The tax effect depends on the tax legislation of your country. 예 : in our country, these realized differences are optionally taxable (you can opt to tax them when they arise, or not to tax them at all). S.

Hi Silvia, could you please inform the gains/losses raised from the revaluation of bank balances in foreign currencies should be classified as realized or unrealized according to IFRS?

I assume you are translating into the functional currency. In this case, it’s realized in profit or loss (anyway, IFRS do not know the term “unrealized”). S.

Thanks for quick answer, my local Financial statement currency is EGP and my question is regarding reevaluating the bank balances in foreign currencies (the equivalent of these currencies in EGP in my books) the FX gains or losses appears is realized? I need your reply for my local reporting and for the consolidated report for my group (more than 1 company report)

Yes, these gains and losses are realized, that is in profit or loss. S.

I have following queries:

1. Exchange Gain or Loss – Realized and Unrealized: How to present it in financials.

вЂў As Raw material Cost i. e before gross margin.

вЂў As finance cost i. e after gross margin.

вЂў Realized and unrealized Both as finance cost.

вЂў Realized and unrealized Both as raw material cost.

2. Finance Cost: Inclusion and exclusion Trade Finance and Bank Charges, Overdraft interest shall form part of finance cost or bank interest, LC Commission shall form part of Raw Material cost or shall be treated as bank charges (may not be relevant to IFRS) just the accounting treatment.

3. Revaluation of Forex assets and liability at period closing, eg cash backed LC, how to treat this…

Suppose I have an external commercial borrowing(India) of 100M USD for 10 years, with conversion rate of 1USD= 50INR.

Now I hedge this and I have a 10M debtor every year.

If in future the exchange rate becomes 1USD=60INR, how would my liability be impacted and what would be the balancing accounting.

On my books in INR, I will have a 6000INR loan, but how would I balance this?

Dear Chirag Jain,

if you do it right, then you would have a corresponding derivative asset amounting to approximately 1000INR in your accounts. S.

I have a question. If my entity has a functional currency of EUR and it has foreign currency transactions in GBP, when I go and prepare the accounts in a GBP presentation currency, do I apply a period end rate to my original GBP transactions or just use the original GBP amounts?

Dear Richard, please apologize for the later response. Let me split it:

- Monetary assets/liabilities: At the year-end, you translate it from GBP to EUR, you use closing rate, isn’t it? Then when you translate it back to GBP (as to presentation currency), you use the same rate and you should be fine.

- Non-monetary assets/liabilities: At the year-end, you do not translate them, but you keep them in a historical rate. However, after you recognized the asset initially, it stopped being GBP asset and became EUR asset (it’s non-monetary). So yes, apply closing rate.

- Transactions in P/L: you should apply the transaction date rates, so you should be OK.

희망이 도움이! S.

Hi, Silvia. I have a question about translating statements from functional currency to presentation. Is the resulting difference in OCI is just an item (line) which balances other items of statement of financial position with each other? Or there should be some postings in the accounting books? It`s a little bit confusing, because if we have operations in different currencies other than functional and we report in the functional currency, the exchange difference goes to P/L.

But I think the first variant is right.

Yes, Katrine, the first variant is right. Translating FS to presentation currency is NOT a bookkeeping operation – it’s just a presentation. S.

감사! It helped a lot)

Hi, Silvia. I`m wondering is there any situations when IAS 21 may not be applied. Particularly I`m interested in the preparation of statements in the reporting currency other than functional. I`m working in the company that prepares statements for its Holding, using the closing rate for all items, including retained earnings, so there is no need of including differences in OCI. But Holding is the European company and works according to the IFRS requirement. My colleagues don`t know. You are my only hope.

well, as soon as a company or a holding applies IFRS, then it must apply ALL IFRS standards, including IAS 21. There is no exception. So, if your financial statements will be a part of holding’s consolidated financial statements under IFRS, then yes, you need to apply IAS 21. S.

I have seen one IFRS interoperatation Committe for Revenue Recognition when the Sales Contact is in Foreign Currency (Foreign currency translation of Revenue)

Foreign currency translation of revenue: views 5.

Revenue is recognised using the spot rate at the date:

вЂў an enforceable contract is entered into (T0): View A.

вЂ“ rights and obligations of transaction established at this date.

вЂў advance payment is received (ie on recognition of deferred.

revenue) (T1): View B.

вЂ“ first recognition of transaction is when either of parties to contract first.

вЂў the revenue is recognised (T2): View C.

вЂ“ if payment is in advance, the difference between the deferred revenue.

balance and amount of revenue due to fx movements is recognised.

as an exchange gain/loss as revenue is recognised.

вЂ“ delivering services/goods is viewed as a transaction in its own right.

You have any idea about finalisation of above issue .

Advance Payment Received.

Which Exchnage rate we should use for entering Sales & Purchases ?

your clarification is highly useful.

More on this topic.

Honestly speaking it is difficult to understand the topic. suppose the following is the case.

Contract signed Jnaury.

Advance Payment Received (30%) February.

Goods Supplied. May.

Remaining amount Received (70%) July.

Hi Albi, no, this issue has not been completed yet. And, it’s so complex, that it’s difficult to respond within 1 comment, but I can write an article with a case study in the future. S.

thank you in advance for that Article. That would be a great research.

If feasible, please consider Payments to Supplier also.

Contract in Foreign Currency (Sales& Purchase)

Contract signed with Client Janaury.

Contract signed with Suppplier Janaury.

Advance Payment Received from Client (30%) February.

Advance Payment to Supplier (70%)-March.

Goods Supplied - May.

Remaining amount to Supplier (30%)-May.

Remaining amount Received from Client (70%) July.

Many accountants & Auditors are confused about the proper treatment. If we use spot rate for recording all the transactions, There would be misleading result. If exchanges rate goes up during the period, better to delay the receipt from Clients if rates decreases then huge loss.

I am from the Philippines. My client has a foreign currency bank account. At year end, I translated the balance using the closing rate for Financial reporting purposes. How do I account for the foreign currency gain/loss? Is it “unrelealized” or “realized”? 고맙습니다.

it’s realized, i. e. you recognize the gain or loss via profit or loss account. S.

Is there any possibility of an unrealized gain portion for cash?

I really like your explanations on IFRS but i also need clarifications IAS 21 (Foreign currency translation) on tax administration that collects in different currencies and now during reporting what would be the treatment of the opening balances, period collections, treatment of the loss/gain on translation and closing balances presentation.

please, you need to describe the transaction more precisely. When tax is paid in your local currency on foreign currency items, then the translation depends also on the tax rules, not only on IFRS. But in general – all these payments are translated either via real rate recalculated by your bank, or by the spot rate, as they represent the translation from foreign currency to your functional currency. Opening tax liabilities in foreign currency are translated by the closing rate (of previous rep. period). Gains/losses are reported in profit or loss. S.

i have a issue regarding loan revaluation. can you tell me which rate is use for revaluation of loan?? i. e. buying rate or selling rate. this revaluation is not for a bank or any financial institution.

Thanks for IFRS Box , has always been helpful, please if I have taken a loan denominated in foreign currency and at each reporting date , I convert to my functional currency at the closing rate at that period , will the exchange loss or gain go to OCI or P&L.

P/L, because it’s a monetary item. S.

I am not yet due to pay back the loan , is the exchange rate realized or unrealized . Also is there any situation I can treat the exchange loss through OCI.

Dear Silvia , In case the company decides to change the prtesenatation currency during the year, then how to translate comparative figures. Also wrt current year figures-is the procedure same as for change in functional currency.

IAS 21 does not say anything about the change of presentation currency, but it is appropriate to follow the rules for change in accounting policy under IAS 8 (unless it is not practical), i. e. retrospective application.

I have one question as follow.

Our subsidiary is based in Mozambique where the exchange rate was about 30 at 31/12/2014 and 44.49 at 31/12/2015 and around 78 at this moment. However, the official inflation rate of this country is relative low (about 15% in 2016) and will not be over 100% for the last 3 years.

Can we consider Mozambique a hyperinflationary economy? If not, what can we do to ensure the comparability of prior period information.

Thank you in advance for your help,

Sorry, I would like to add further information.

This question is for the consolidation purpose. The parent company is reporting in USD while the subsidiary is reporting in MZN (Mozambique local currency).

well, the criterion about the official rate being over or coming close to 100% for 3 years is not decisive. There are more factors to consider whether the economy is or is not hyperinflationary – 예 : how do people keep their wealth – in foreign currency? In local currency? Or, are interest rates, salaries and prices anyhow linked to a price index? etc. For more guidance, please look to IAS 29.3.

Then, if there are no such indicators, and you conclude that an economy is not hyperinflationary, you just don’t apply IAS 29. S.

would you please clarify the deference between the translation in subsequent report in How to report transactions in Functional Currency paragraph and How to translate financial statements into a Presentation Currency paragraph as the non monetary items well translated at historical cost initially then we well translated them at closing rate when we translate financial statements?

Also Silva need advice regards the risks that may arise if we replaced volatile functional currency with one of major currency like $( specially in.

Hyperinflationary economy environment )

Hi Hisham, if you don’ translate all your financial statements into some other (presentation) currency, then you do nothing with your non-monetary asset. If you do translate your financial statements to the other currency, then you use closing rate for all assets including non-monetary. I think I explained it in the paragraph Functional vs. Presentation currency.

Hi there Silvia, I would like to obtain a clarification with regards to the term “Settlement” as used in IAS 21.

In paragraph 15 of IAS 21, it is stated as follows :

“An entity may have a monetary item that is receivable from or payable to a foreign operation. An item for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the entityвЂ™s net investment in that foreign operation, and is accounted for in accordance with paragraphs 32 and 33.”

Does SETTLEMENT of the intercompany balance refer only to payment, as in, cash payments ? Or let’s say, to settle a loan payable to its parent, a subsidiary issues shares to the parent. In substance, would the issue of shares be considered as a form of settlement ?

My interpretation of this is : since the liability of the subsidiary towards the parent no longer exists because of the issue of shares, this is in substance, a settlement of the loan.

Please tell me if I’m right here.

미리 감사드립니다.

Yes, Rishi, I agree. Settlement is a broader term, not limited only to a payment or cash (that would be “cash settlement”).

Thanks for the reply Silvia.

In consolidate foreign operation to presentation currency, IAS 21 states that the results and financial position of foreign operation shall be translated using:

- Assets, liability: closing rate.

- PL: average rate.

However, I don’t know the mentioned fx rate at closing date is the Fx rate used to FX revaluation of foreign operation or parent company at reporting date?

Due to parent company has cash in foreign operation’s currency, it will revaluation foreign cash at reporting date using closing rate. I wonder if using the closing rate of foreign operation to translate to presentation country leads to different applied closing rate in consolidation FS.

And the average rate will get from foreign operation or parent’s transaction?

Hope to see your answer, thanks!

My company is located in Nigeria and functional currency is Naira. our transaction included foreign currency as well as we are involved in Port Logistic services under Oil and gas sector. Every month we run exchange routing to align our current assets and Liability with closing rate.

Now my boss has ask me Balance sheet in USD currency as of end 31st Oct. if I convert all the assets and Liability with closing rate of Oct, then my assets will drastically reduced in term of USD currency compare to last year. the last year rate was 197.5/USD where as of Oct closing rate is Naira 315/USD.

Should I convert with closing rate assets or I should use historical rate.

I should use closing rate only for Current assets and current liability. For assets I should use historical rate?

if I use historical rate only for assets then I am generating difference around 153Mil USD which I have to show under share capital to make the tally Asses-Liability=share capital.

it depends on whether you want to follow IFRS or not. If yes, then technically speaking, you will be translating your financial statements to another presentation currency and in such a case, you need to use the closing rate (in this case, you don’t care about monetary/non-monetary items and historical rates).

Unfortunately, Naira weakened a lot and you could show very high “CTD” or currency translation difference in your equity to balance assets with liabilities.

Dear Silvia, one question regarding PPE traslation.

(I am in Argentina, our funcional currency is PESOS, but the presentation currency (in order to send montly package to Vienna) is USD.

1) In 2006 we bought a warehouse. The cost was 1.055.00 USD. The fx rate at that moment was 3,07. Therefore It equeals to 3.238.850 PESOS.

2)Then, at the end of each month, I have to do the “periodic valuation”. Considerig it is a non monetary item and we measure according historical cost, I have to transalte those 1.055.000 usd to the “historic rate” (3,07). Therefore, by the end of the month the amount in PEOS is the same.

3) Transaltion into presentation currency:

IAS 21 says that all assets have to be translate using the closing rate, BUT in this case this asset is nominate in USD (it was a result of a foreing transaction). So in this case I do not have to transalte from PESOS to USD right? The amount in USD to report in package will allwasy be 1.055.00 USD?

Thanks in advance!!

unfortunately not. PPE is a non-monetary asset and once it sits in your account, you stop thinking of it as about “USD” asset. So no, the amount on your fixed assets will not be 1055 USD, but 3 238 850 pesos translated with the closing rate. S.

Hello I’m in Lebanon and I’m not able to purchase the IFRS kit why? Why my country not on the list.

I think PayPal does not work in Lebanon, that’s why your country is not on the list. For this reason, you can make a payment with the alternative payment gate, directly with the credit card here: sites. fastspring/ifrsbox/product/ifrs-kit-offer.

If you need my further help, just let me know. Kind regards, S.

Hi Sylvia, Revenue was recognised in year 2014 in VEF which has steeply declined up till 2016, subsequently invoice was also cancelled and reissued with revised rates in 2016. Should revenue be also reversed in 2016 and re-recognised at a revised rate or it should be adjusted through retained earnings? Could you please quote relevant para of IFRS addressing the issue? 많은 감사드립니다.

the good question here is why the invoice was cancelled and reissued – was is just due to the change in the VEF?

If it relates to the correction of the revenue itself, then yes, it would be appropriate to correct the retained earnings (it’s a correction of error in the past, please see IAS 8).

If it relates only to the change in VEF and adjusting the receivable in VEF to reflect the change, but it has nothing to do with the past revenue, then I would simply recognized changes in P/L. The reason is that it’s a current-year transaction, something like “revising a receivable and passing the loss to a client”. S.

Dear Silvia, Thanks a lot for your reply to Allan. Really appreciated. What I would like to ask further is that I have seen a lot of leading companies declaring revenue results post and pre Foreign Exchange Gain/Loss. If I go by your approach then why do they absorb the foreign exchange impact in the revenue line. To be more specifc US Dollar appreciated in Q1 2015 and leading companies such as Genral Motors, Coca Cola etc. put out their result showing a pre & post Fx impact. We thank you once again for a continuous support you provide to readers all across the world. Kindly keep up the good work.

In Allan’s case, it was one specific case and from the question it was implied that the revenue was adjusted by the difference in foreign exchange – maybe this was the agreement with the client. In some other agreements, it’s the supplier who bears the currency risk. As you see, it all depends.

However, you need to understand how these leading companies sell. Do they sell in USD? Or do they sell in foreign currency – other than their presentation currency?

Also, may I kindly point you to their notes to the financial statements? I am pretty sure that there’s an explanation for that. S.

I am a bit confused about journalizing foreign currency transactions, let say a sale of goods in foreign currency on account.

The standard says that you translate it to functional currency by applying the spot exchange rate. The receivable is denominated in foreign currency while it is journalized in the functional currency. If it is not flagged as a receivable in foreign currency then you cannot keep keep track of the change in value do to the change of the foreign currency exchange rate. How do you specify that in the general journal? 많은 감사드립니다.

usually, as far as I know, these foreign currency items are recognized in 2 currencies in the accounting system – both functional and foreign. Of course, you see only the balance in the functional currency when looking to the general ledger, but the information should be somewhere in the system. S.

Kindly help me in regard to below query:

Treatment of FX rate variation on imported material: Kindly note that we import material e. g. from US and have SAP system in our company.

At the time of Goods Receipt system (i. e. SAP) Debit the inventory with exchange rate at the time of receipt of material and pass the entry.

Matetrial Account ——Debit (With FX rate at the time of Goods Receipt)

To GR/IR Clearing Account.

On receipt of Invoice from Vendor system pass the entry.

GR/IR Account———–Debit (With FX rate at the time of GR)

Price Rate Difference—Debit (With FX rate variation between GR and Date of Invoice Receipt)

To Vendor Account (FX Rate at the time of Invice Receipt)

My query is whether the price rate difference mentioned above should charge on the Material or directly charged in Profit & Loss Account?

the question is what the transaction date is. In my opinion it is the date when you accepted inventories, not the invoice. Therefore, the price difference should be recognized in profit or loss. You can read more about it here. The article is about the prepayments in foreign currency, but it explain quite clearly what the transaction date is and it helps you understand the issue. S.

Please consider below situation -

X Ltd is registered in Georgia (Europe) and is engaged in power business. Power is sold 20% in local georgian market and 80% in Turkey. All sales proceeds are converted in USD on receipt of revenue. The providers of capital i. e. Term loans and equity provides funds in USD.

The functional currency decided by management is Lari (Georgian Currency). Now at every end of period, outstanding loan is being revalued and the exchange difference (USD-lari) is charged to Profit & Loss Account. This exchange loss is a non-cash item because this notional loss will never impact the profitability of the company, as the loans are denominated in USD and loan liability will remain in USD.

In this situation, can Company route such exchange loss on revaluation of loans through other comprehensive income instead of hitting P&L statement.

Hi Mohit, no, I’m sorry. I understand your concerns, but if your functional currency is Lari, then you need to re-calculate and recognize the difference via P/L. S.

I work for an NPO and would like to know the treatment of exchange rate differences of funds received from donors. At the budgeting stage we use the spot rate and these budgets can be for a period of 3years and the funds received in tranches. Please advise, thank you.

we are closing year Dec 16.

we have loan from 3 bank around $ 200Mil for running operation activity. we get interest invoice every month from the bank, we recognise as expenses. kindly advise as per IFRS how to treat the actual interest cost in P&L.

Please advise about non-monetary items like advance to supplier, if I have banke letter of gurantee from supplier against advanced payment, curreny revaluation for his balance as advance is correct or not?

for advances, see above. It depends on what type of advance it is. If it’s for goods or services and you don’t assume to get the cash back, then non-monetary. S.

Please advise in case of devaluation of currency(i. e.:Egypt) of foreign entity do we still continue to translate foreign operation like we normally do (i. e.: balance sheet items at closing and income statement at average) or there is any other method to translate.

미리 감사드립니다.

devaluation itself is not a reason for different reporting. The only exception is when your economy is hyperinflationary – in this case, there are different requirements to present comparatives, etc. – there’s a specific IFRS standard for it, plus look above to the article. S.

Find your article and comments to be very useful.

My query is regarding identifying of functional currency of an entity having manufacturing facilities in one country (say – India) more of domestic raw materials (partly imports too), local labor and other expenses locally, but exporting all their products to another country (say US)- the sales being designated in the currency of the foreign country to whom exports are made (in USD)and settlements also being made in this currency (USD). A portion of the earnings maybe retained in USD balances (but in an Indian bank) from time to time – essentially based on import needs if any. The pre - IFRS practise was to traslate the USD transactions into Indian Rupee. Confused about whether USD or INR will be the functional currency in this case? Indian Rupee has to be continued as the presentation currency.

Hello Silvia M. I read all your post and convince to go for IFRS KIT. but I have few queries, It would be great if you can contact me on my or give me your ID?

Waiting for your reply.

Hi Gaurav, please try resending the message to supportifrsbox.

Amazing building of concepts through you!

I feel some confusion while accounting for the purchase of machinery for e. g from a foreign country, so if total cost is 100,000$ and terms of payment includes downpayment as an advance to supplier and 4 instalments. then how to account for this, and do the previous payments already made if talking about 3 payment, to be brought to latest forex rate and difference computed as exchange gain finally become part of the asset?

Dear Silvia Mam,

Can you please make it clear to me whether any foreign exchange differences (loss) arising out of import of capital goods bought for the start of operation of its business on its pre - operation stage can be booked or capitalized assuming it to be a pre-operating cost itself??

No, you don’t capitalize any forex gain/loss. Also, you do NOT capitalize the pre-operating costs under IFRS (unless they specifically relate to the acquisition of an item of PPE or intangible asset or other eligible asset).

We are an Online Travel Agent and acting like an agent according to; ifrsbox/ifrs-revenue-principal-agent/

Our revenue is the commission on trips (no package deals created by our company), price is determined by the actual operator.

How to deal with the received prepayments and payments made to the final operators?

Example: (note: company has USD and EUR bank account)

Day 01 вЂ“ customer prepayment 1.000 USD вЂ“ fx to EUR = 1:1.

Day 10 вЂ“ prepayment by us to Operator 3.000 THB вЂ“ fx to EUR= 1:30.

Day 20 вЂ“ prepayment by us to Operator 20.000 THB вЂ“ fx to EUR= 1:25.

Day 30 вЂ“ cancellation date, on date of Revenue recognition:

According to IFRIC 22 (effective 01-01-2018) you should take the fx on the actual вЂњtransaction dateвЂќ. By this, it means that we will have the following result to be determined on Day 30:

Revenue customer part: 1.000 / 1 = EUR 1.000.

Revenue operator part: вЂ“ 3.000 / 30 = вЂ“ EUR 100.

Revenue operator part: вЂ“ 20.000 / 25 = вЂ“ EUR 800.

Total revenue result in the P&L to be taken / shown: EUR 100,-

No FX result should be shown in the report, based on IFRIC 22.

Is that the right conclusion? Or do you have a different opinion on this? 지원해 주셔서 감사합니다.

We are in the process of implementing Dynamics 365 and I have a question concerning Forex /PPV accounting under IFRS.

If we have our standard costs in GBP say Good A 80 GBP and we have raised a PO for 100 EUR (as it is a foreign supplier). Exchange rate at Std cost import is 0.8.

At receipt of the goods (before we receive the invoice) is 0.79.

Our postings would be: (in GBP)

Dr Inventory 80 (since we are standard costing)

Cr GRNI 79 (since в‚¬100 now equals ВЈ79 at the fx rate at receipt.

Cr ? 1 (being forex difference)

Is the Cr PPV or FX difference (bearing in mind that I think that the GRNI/PO is a non monetary item)?

미리 감사드립니다.

We are a gas distribution company and buy gas from various exploration companies. Monthly Dollar invoices are received for gas procured. We pay in Rupees.

To avoid exchange rate complications, we have entered into an agreement with the exploration comapnies such that we maintain/lock a mutually agreed exchange rate for 6 months. We therefore book our liability and make payment on such rate since its known to us.

Is IFRS 21 applicable in this scenario?

What rate should foreign currency payables/ receivables be converted at? Is it the Buying rate or Selling Rate.

If the company changed the functional currency, should we translate the comparative FS as well?

Question about the proper treatment of a construction work in progress (WIP) statement. For my question, assume that the project is being managed in a local currency different from the reporting currency.

I assume that the original contract would be valued at the contract’s inception date.

Now the project has a contract change order. I am assuming that I value the change based on its inception date.

Now the revised contract (original + change orders) would be the original contract (in reporting currency) plus the change order (in reporting currency)

Is this the correct treatment? 미리 감사드립니다!

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최근 게시물.

Sometimes, the things can happen behind your bac.

When I was an audit freshman, my least favorite .

If you invest your savings to the purchase of so.

Buy one, get one free. Discounts on future pur.

In my last article I tried to outline the strate.

가입 확인을 위해받은 편지함을 확인하십시오.

거래 익산시

Wednesday 7 February 2018

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