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In such scenarios, the monetary items must be reported in reporting currency at the value which is expected to be realized from, or needed to disburse, such monetary item at the balance sheet date Though, in specific circumstances, the closing rate might not exhibit with reasonable accuracy amount in the reporting currency which is expected to be realized from.
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In case it employs a different currency, the Standard Though, a company usually uses the domiciled country’sĬurrency. This standard doesn’t specify the currency in which companies represent their books of accounts.The standard also deals with transactions in foreign currency which are in the nature of forwarding exchange contracts
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Standard deals with the principal issue with respect to accounting forįoreign operations and foreign currency transactions in deciding whichĮxchange rate to be used and a guidance on recognizing the financialĮffect of changes in exchange rates in the financial statements. Applicability of AS 11 The Effects of Changes in Foreign Exchange Rates