Foregin Currency transaction

[smraza]

Transactions in foreign Currencies are initially traslated into local currencies at the rates prevailing at the date of trasactions, suppose u have made a sale (in foreign currency) you should take the rate at the date of transaction, now you have some foreign currency in you account, and that is you asset, and that should be reported in balance sheet at the rates prevailing at the balance sheet date.
any exchange loss or gain arising out will be taken into current Profit and loss account.
you asked for the reference of IAS, IAS 21 summary is available on www.accountancy.com.pk.
follow the link.
http://http//www.accountancy.com.pk/refe....asp?id=28


SMR