IAS 21 Foreign Currency - and group accounts!
At SBR we get involved in explaining how the financial statements of an overseas subsidiary are translated in the presentational currency of the group as part of the consolidation process. In this episode I set out the process and explain how the group exchange difference arises and how it is accounted! All good stuff. There is a separate episode which just deals with foreign currency transactions and balances from the perspective of the individual company.