29Translation of amounts into Australian currency

29 Translation of amounts into Australian currency

(1) For the purposes of this Act, an amount (including an amount used to work out another amount) expressed in a currency other than Australian currency is to be translated into Australian currency using the method in subsection (2) or (3).

Example: If the accounting records and financial reports of an entity are expressed in a foreign currency, some or all of the entity’s gross revenue will need to be translated into Australian currency before the tests in this Act are applied.

Translation in accordance with accounting standards

(2) If an entity wishes to translate into Australian currency an amount that is derived from a financial report that:

(a) uses a method to translate amounts from one currency to another; and

(b) is prepared in accordance with applicable accounting standards; and

(c) is audited in accordance with the Corporations Act 2001 (or a corresponding law of a foreign country);

the entity must translate the amount into Australian currency using that method if this is possible.

Translation using published average exchange rates

(3) Unless subsection (2) applies, an entity must translate amounts into Australian currency using:

(a) an average exchange rate for the period most closely corresponding to the period to which the amount relates; and

(b) either:

(i) the exchange rates published by the Reserve Bank of Australia; or

(ii) if the amount is in a currency for which the Reserve Bank of Australia does not publish an exchange rate—a publicly and commercially available market exchange rate.