AASB 121 - The Effects of Changes in Foreign Exchange Rates - July 2004
ObjectiveObjective
Start here
Get a plain-English read of Objective
Turn the raw legal text into a practical explanation grounded in AASB 121 - The Effects of Changes in Foreign Exchange Rates - July 2004.
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 addition, an entity may present its financial statements in a foreign currency. The objective of this Standard 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.
2 The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements.