Topic covered: IAS 21
The Effects of Changes in Foreign Exchange Rates(specifically, foreign currency transactions)
Date prepared/updated: July 2011
Question length: 4 pages
Solution length: 9 pages
Required:
Determine the functional currency of each of Polly’s companies under IFRSs. Include the related analysis.
For all transactions noted above related to 20X2, calculate the foreign currency impact for each company in its functional currency and provide the related journal entries.
(Note: The purpose of this question is to determine the foreign currency impact of the 20X2 transactions for each individual entity in their respective functional currencies. The question is not addressing the presentation currency on consolidation of this group of companies.)
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