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Foreign Operations Notes

This document discusses various exchange rates used in accounting. It defines the closing rate as the rate at the reporting date, the historical rate as the rate when a transaction took place, and the average rate as an approximate of the actual rate for the year. It then outlines different translation methods and which exchange rates are used to translate revenues, expenses, assets, liabilities, and equity depending on if they are monetary or non-monetary and current or non-current.

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nurun nahwah
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53 views

Foreign Operations Notes

This document discusses various exchange rates used in accounting. It defines the closing rate as the rate at the reporting date, the historical rate as the rate when a transaction took place, and the average rate as an approximate of the actual rate for the year. It then outlines different translation methods and which exchange rates are used to translate revenues, expenses, assets, liabilities, and equity depending on if they are monetary or non-monetary and current or non-current.

Uploaded by

nurun nahwah
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Exchange rates

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Closing rate Current rate/the rate at the reporting date


Historical rate/Transaction date rate/actual rate/spot The rate when the transaction took place
Average rate Approximate of actual rate for the year

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Translation Method
Current/non-current Monetary/non-monetary
Methods Closing rate method Temporal method MFRS121
method method

Historical /
Revenue Closing rate Average rate Average rate Average rate
Average rate

Historical rate Historical rate


(Depr./amortisation) (Depr./amortization
Historical /
Expenses Closing rate Average rate
Average rate
Average rate Average rate
(Others) (Others)

Closing rate Closing rate Historical rate


(C.A.) (monetary) (measured at cost)
Assets Closing rate Closing rate
Historical rate Historical rate Closing rate
(Others) (non-monetary) (measured at current value)

Closing rate Closing rate Historical rate


(C.L.) (monetary) (measured at cost)
Liabilities Closing rate Closing rate
Historical rate Historical rate Closing rate
(Others) (non-monetary) (measured at current value)

Historical rate Historical rate Historical rate Historical rate Historical rate
Equity
(Rates at acquisition date) (Rates at acquisition date) (Rates at acquisition date) (Rates at acquisition date) (Rates at acquisition date)
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