Accounting Standard â 11 Effects of Changes in ... - tnkpsc.com

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Integral Foreign Operations• Carries on business as if it were an extension ofthe reporting enterprise’s operations• Foreign operation only sells goods of reportingenterprise only and remits the proceeds ofreporting enterprise• Change in the exchange rate has an immediateeffect on the reporting enterprise’s cash flow fromoperations17/05/2008 10
Non-integral Foreign Operations• Accumulates Cash & other monetary items,incurs expenses, generates income andborrows in local currency• Change in exchange rate has little or nodirect effect on the present and future cashflows from operations17/05/2008 11
Page 1 and 2: Accounting Standard - 11Effects of
Page 3 and 4: Objective‣ Which exchangerate to
Page 5 and 6: Foreign Currency TransactionInitial
Page 7 and 8: Recognition of ExchangeDifferencesT
Page 9: Financial Statements ofForeign Oper
Page 13 and 14: Integral Foreign OperationsItemMone
Page 15 and 16: Disposal of Non-integralForeign Ope
Page 17 and 18: Forward Exchange ContractsItemProfi
Page 19 and 20: Disclosure‣Reconciliation of amou
Page 21: Thank You17/05/2008 21

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Accounting Standard â 11 Effects of Changes in ... - tnkpsc.com