Online Course
Jun 26, 2020 - Jun 26, 2020
9 Students Enrolled

Course overview:

Exchange rates impact accounting in a multitude of ways, most of which are dealt with by IAS 21 ‘The Effect Of Changes In Foreign Exchange Rates’, GAPSME Section 18 and the relevant sections in the Companies Act. The accountant needs to have a good understanding of:

  1. How to determine the currency of the primary economic environment in which the entity operates, namely the functional currency.
  2. How to account correctly for transactions denominated in currencies other than the functional currency, namely foreign currency.
  3. How to measure the resulting array of assets and liabilities denominated in foreign currency at the reporting date.
  4. How to translate the entity’s trial balance into the presentation currency selected by the entity, when this is different from the functional currency.
  5. How to translate the financial statements of a foreign operation into the entity’s presentation currency.
  6. How to prepare a statement of cash flows including foreign currency.
  7. An illustration of the main disclosures impacted by foreign exchange (e.g. PPE, intangible assets etc.).


The training course is specifically targeted to accounting professionals and students, especially those who are pursuing or intend to pursue a career in audit, accountancy or IFRS expertise.


Participants are expected to have a solid understanding of basic accounting concepts, including double entry and basic financial reporting.


Friday 26 June 2020


13:45 – 14:00 – Registration

14:00 – 15:30 – Part 1

15:30 – 15:45 – Coffee Break

15:45 – 17:00 – Part 2

17:00 – 17:15 – Question Time

CPE Accreditation:

3 core hours


John Debattista and Paul Zammit

Course Agenda:

Part 1

  • An introduction to functional currency, foreign currency and presentation currency.
  • Determining the functional currency.
  • Accounting for transactions in foreign currency up to reporting date.

Part 2

  • Translation from the functional to the presentation currency.
  • Translation of a foreign operation to the presentation currency.
  • The impact of foreign exchange rates on the statement of cash flows.