viernes, 19 de junio de 2015


When you need to translate your items denominated in foreign currency to your own functional currency, then there’s one little problem:
Is that item monetary or non-monetary?
If you determine the nature of your item incorrectly, it can lead to totally wrong presentation in the financial statements.
It’s not so important when you consolidate and you need to translate some foreign subsidiary to your own presentation currency, right?
Because, the rules in IAS 21 say that in such a case, you translate all your assets and liabilities by the closing rate. That’s clear.
But when it comes to translating individual items and transactions in your own financial statements to the functional currency, then the rules are more complex and you start to look at whether the item is monetary or non-monetary.
In my newest post, I explain what makes a difference between monetary and non-monetary items and you'll find a clear table with identifying the character of various items in your balance sheet.
If you need some advice about the specific item, just leave a comment below the video.
Please feel free to share this article or forward this e-mail to your friends who can get some benefit out of it.
Thank you!
With appreciation, 

No hay comentarios: