Foreign Currency Translation Gains and LForeign Currency Translation Gains and Losses

Foreign Currency Translation Gains and Losses

B29 Foreign currency translation gains and losses are measured for interim financial reporting by the same principles as at the end of each annual reporting period.

B30 AASB 121 The Effects of Changes in Foreign Exchange Rates specifies how to translate the financial statements for foreign operations into the presentation currency, including guidelines for using average or closing foreign exchange rates and guidelines for recognising the resulting adjustments in profit or loss or in other comprehensive income. Consistently with AASB 121, the actual average and closing rates for the interim period are used. Entities do not anticipate some future changes in foreign exchange rates in the remainder of the current annual reporting period in translating foreign operations at an interim date.

B31 If AASB 121 requires translation adjustments to be recognised as income or expense in the period in which they arise, that principle is applied during each interim period. Entities do not defer some foreign currency translation adjustments at an interim date if the adjustment is expected to reverse before the end of each annual reporting period.