- 5 Marks
CR – Nov 2021 – L3 – Q3a – Foreign currency
Explain the disclosure requirements when financial information is presented using convenience translation in a different currency under IAS 21.
Question
An entity sometimes displays its financial statements or other financial information in a currency that is different from either its functional currency or its presentation currency simply by translating all amounts at end-of-period exchange rates. This is sometimes called a convenience translation. A result of making a convenience translation is that the resulting financial information does not comply with all IFRS, particularly IAS 21: The Effects of Changes in Foreign Exchange Rates.
Required:
Explain the disclosure requirements when convenience translation is used to display financial information.
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