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What is TMS 21?The purpose of this Standard is to regulate how foreign currency transactions and foreign operations are included in financial statements and how they are translated into the currency used in the financial statements.
What is the applicable currency?
As a result of the activities of the companies The currency that he earns and uses for the costs he incurs for production is the functional currency of that company, and this is often the currency of the countries in which the companies operate. However, in some cases, the functional currency may change.
What is the foreign currency conversion difference?It is also called the change in the closing values of the previous year because the capital accounts of a foreign affiliate or subsidiary are translated with a different exchange rate compared to the previous period.
What is IAS 21?
This The purpose of the standard is to regulate how foreign currency transactions and foreign businesses are included in the financial statements and translated into the currency used in the financial statements. 2.
What is the closing rate according to the Exchange Rate Effects Standard?Closing Rate: The rate valid on the balance sheet date. Currency difference: It is the difference resulting from the conversion of a certain amount in one currency to another currency at different rates. Exchange Rate: It is the exchange rate of two currencies. Functional Currency: It is the currency of the main economic environment in which the business operates.
What is an unrealized exchange rate difference?
Unrealized exchange difference, that is, only the historical value (the date of recording, the first transaction date) to the value at the balance sheet date. There is an asset-liability provision in the balance sheet as well as an income-expense provision in profit and loss.
According to the Tax Procedure Law (TPL), the maturity difference in forward purchases arising after the purchase of the commodity is taken into account as cost or financial expense as an optional right, while it is accounted as a financial expense for the period according to TAS-2 Stocks Standard.
p>Negative exchange rate differences between the recorded exchange rate and the transaction dates regarding the foreign currency safe are recorded in which account and how? /p>
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