دوشنبه, 20 خرداد 1392 01:46

Accounting Standard AS 16Foreign Currency Translation

 

An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In order to include foreign currency transactions and foreign operations in the financial statements of an entity, transactions must be expressed in the entity’s reporting currency and the financial statements of foreign operations must be translated into the entity’s reporting currency (Rial). The principal issues in accounting for foreign currency transactions and foreign operations are to decide which exchange rate to use and how to recognize in the financial statements the financial effect of changes in exchange rates.

 

Accounting Standard AS 16

 

Foreign Currency Translation

 

This Standard should be read and applied in the context of A Preface to Accounting Standards.

 

Objective

 

1. An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In order to include foreign currency transactions and foreign operations in the financial statements of an entity, transactions must be expressed in the entity’s reporting currency and the financial statements of foreign operations must be translated into the entity’s reporting currency (Rial). The principal issues in accounting for foreign currency transactions and foreign operations are to decide which exchange rate to use and how to recognize in the financial statements the financial effect of changes in exchange rates.

 

2. The translation of foreign currency transactions and foreign operations should produce results which are generally compatible with the effects of rate changes on a company’s cash flows and its equity and should ensure that the financial statements present a true and fair view of the results of actions. Consolidated statements should reflect the financial results of and relationships as measured in the foreign currency financial statements prior to translation.

 

Scope

 

3. This standard should be applied:

 

a) in translating the transactions in foreign currencies; and

 

(b)  in translating the financial statements of foreign operations that are included in the financial statements of the entity by) consolidation, or by the equity method

 

4. This standard does not deal with hedge accounting for foreign currency items other than the classification of exchange differences arising on a foreign currency liability accounted for as a hedge of a net investment in a foreign entity.

 

5. This standard does not deal with the restatement of an entity’s financial statements from its reporting currency into another currency for the convenience of users accustomed to that currency or for similar purposes.

 

6. This standard does not deal with the presentation in a cash flow statement of cash flows arising from transactions in a foreign currency and the translation of cash flows of a foreign operation (see AS 2 Cash Flow Statements).

 

حجم فایل:     158.38 Kb

تاریخ1391/12/2          :

رمز فایل:www.taccountplanet.com

اين مطلب را به صورت کامل میتوانید از لینک زیر دانلود نمایید.

 

 

 

 

تعداد بازدید : 369 بار آخرين بار تغيير يافته دوشنبه, 20 خرداد 1392 01:46

نمایش آبشاری