Difference between revisions of "Cumulative exchange differences"

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* [[Divestment]]
* [[Divestment]]
* [[Exchange difference]]
* [[Exchange difference]]
* [[Foreign currency translation]]
* [[Foreign exchange]]
* [[Foreign exchange]]
* [[Foreign operation]]
* [[Foreign operation]]

Latest revision as of 23:51, 26 July 2022

1. Foreign currency - translation - exchange differences - IAS 21.

An exchange difference is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates.

Under IAS 21, exchange differences arising on monetary items that form part of the reporting entity's net investment in a foreign operation are recognised - in the consolidated financial statements that include the foreign operation - in other comprehensive income.

Those exchange differences are then recognised in profit or loss on disposal of the net investment.

In this context, cumulative exchange differences are the net total amount that has been recognised to date in other comprehensive income.

Russia-Ukraine - investor relations
"It is critical that the treasurer is able to articulate the materiality of any impacts to the company and its operations and what additional steps are being taken to mitigate any existing or potential risks that may emerge or become significant...
Will you need to assess any Cumulative Currency Translation Differences in the balance sheet that may have an impact on the Income Statement following divestment / impairment [of any relevant foreign operations]?"
Russia-Ukraine: a treasurer's checklist - Association of Corporate Treasurers - 3 March 2022.

2. Foreign exchange differences.

Any similar amounts in other contexts.

See also

External link