CONTENTS

COMPILATION DETAILS

Comparison With IAS 21

Accounting Standard

AASB 121 The Effects of Changes in Foreign Exchange Rates

Paragraphs

Objective 1 – 2

Application Aus2.1 – Aus2.7

Reduced Disclosure Requirements Aus2.8 – Aus2.9

Scope 3 – 7

Definitions 8

Elaboration on the Definitions

Functional Currency 9 – 14

Net Investment in a Foreign Operation 15 – 15A

Monetary Items 16

Summary of the Approach Required by this Standard 17 – 19

Reporting Foreign Currency Transactions in the Functional Currency

Initial Recognition 20 – 22

Reporting at the Ends of Subsequent Reporting Periods 23 – 26

Recognition of Exchange Differences 27 – 34

Change in Functional Currency 35 – 37

Use of a Presentation Currency other than the Functional Currency

Translation to the Presentation Currency 38 – 43

Translation of a Foreign Operation 44 – 47

Disposal or Partial Disposal of a Foreign Operation 48 – 49

Tax Effects of All Exchange Differences 50

Disclosure 51 – 57

Effective Date and Transition 60B – 60J

DELETED IAS 21 TEXT Page 17

Basis for conclusions on IAS 21
(available on the AASB website)

Australian Accounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates (as amended) is set out in paragraphs 1 – 60J. All the paragraphs have equal authority. Terms defined in this Standard are in italics the first time they appear in the Standard. AASB 121 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.