Ch 7: IAS 21 Foreign Currency Transactions 

1. Introduction 

1-1 Introduction to IAS 21 [R]

1-2 Monetary vs. Non-monetary Items [R]

2. Reporting foreign currency transactions

2-1 Individual Entity's Accounting [I]

3. Comprehensive examples

3-2 Q&A Bilal Limited [O]

YouTube Video (8 minutes)

Notes PDF - FR073

Query: Sir loan ko year end 21ma again retranslate kyu nai kea (remaining 1M)

Response: According to question loan is repaid at the end of two year period (i.e. on 31 December 2021). Once repaid, there is no liability, so no issue of retranslation arises.

3-6 Q&A Copper Limited (ICAP Autumn 2019) [I]

3-7 Q&A Rocky Road Limited (ICAP Spring 2020) [R]

3-8 Q&A Kangaroo Limited [R]

3-9 Q&A Cone Motors Ltd (ICAP Autumn 2022) [R]

4. Objective Based Q&A

4-1 MCQs 1 to 20 [R]

YouTube Video (33 minutes)

Notes PDF - TK07

Query: my oint rekates to mcq 5. "A functional currency is the main currency that a company conducts its business" isnt this the definition of functional currecny sir?

Response: The definition as per IAS 21 Para 8 is: "Functional currency is the currency of the primary economic environment in which the entity operates." Further, IAS 21 Para 9 explains that: "The primary economic environment in which an entity operates is normally the one in which it primarily generates and expends cash. An entity considers the following factors....."