In view of the COVID-19 situation, selected ISCA’s CPE courses/sessions will be conducted via Live Webinar.Please do check the details before confirming your registration for the course/session.Introduction Participants are required to bring along a calculator The effect of changes in foreign exchange rate can significantly affect the valuation of assets and liabilities at the initial recognition because the Standard required measurement of foreign assets and liabilities at spot rate at date of transaction. Subsequent to initial recognition of an asset and a liability depending on whether these are monetary or non-monetary items an entity may be required to re-measure the amounts using closing exchange rate at end of reporting period, thus creating volatility in the financial performance and financial position from one period to another. In situation where an entity has foreign operations such as a subsidiary, further complication arises in the measurement of goodwill, fair value adjustment and allocation of foreign exchange difference between the entity and non-controlling interest. Last but not least, the complexity of accounting can be compounded by the used of foreign currency derivatives to hedge against the foreign currency risk where hedge accounting is applied. Standards CoveredIAS21SFRS(I) 1-21FRS 21The Effects of Changes in Foreign Exchange RatesIAS7SFRS(I) 1-7FRS 7Statement of Cash FlowsIAS1SFRS(I) 1-1FRS 1Presentation of Financial StatementsIAS29SFRS(I) 1-29FRS 29Financial Reporting in Hyperinflationary EconomiesIFRS9SFRS(I) 9FRS 109Financial InstrumentsIFRS7SFRS(I) 7FRS 107Financial Instruments: Disclosures Programme Objectives This seminar exhaustively deals with the complex issues of accounting for effects of changes in foreign exchange rates in the consolidated and separate financial statements. The objectives of the seminar are: to provide practical guidance on determining functional currencyto explain the principles of presenting and reporting transaction involving changes in foreign exchange ratessetting up accounting systems for recording changes in foreign exchanges rates including hedge accountingdesigning spreadsheet working papers to translate foreign subsidiaries with different functional currency from the group’s presentation currencyto provide step-by-step guidance on the preparation of statement of cash flows involving foreign exchange transactions and foreign operations cash flows to provide set-by-step guide to handling foreign currency derivatives as well as hedge accounting system for hedging of foreign currency exposureto present and disclose foreign exchange gain or loss in profit or loss and other comprehensive incometo provide an introduction to the effect of hyperinflationary effects on foreign operationsexplaining the impact of changes foreign exchange rates on the financial performance, financial position and cash flows of an entity and the group to use clear and easy to understand case studies to illustrate the issues covered in the outlines below
In view of the COVID-19 situation, selected ISCA’s CPE courses/sessions will be conducted via Live Webinar.
Please do check the details before confirming your registration for the course/session.
Introduction Participants are required to bring along a calculator The effect of changes in foreign exchange rate can significantly affect the valuation of assets and liabilities at the initial recognition because the Standard required measurement of foreign assets and liabilities at spot rate at date of transaction. Subsequent to initial recognition of an asset and a liability depending on whether these are monetary or non-monetary items an entity may be required to re-measure the amounts using closing exchange rate at end of reporting period, thus creating volatility in the financial performance and financial position from one period to another. In situation where an entity has foreign operations such as a subsidiary, further complication arises in the measurement of goodwill, fair value adjustment and allocation of foreign exchange difference between the entity and non-controlling interest. Last but not least, the complexity of accounting can be compounded by the used of foreign currency derivatives to hedge against the foreign currency risk where hedge accounting is applied.
Programme Objectives This seminar exhaustively deals with the complex issues of accounting for effects of changes in foreign exchange rates in the consolidated and separate financial statements. The objectives of the seminar are:
Introduction and Overview for effects of foreign exchange differencesRelationship between: presentation currency; functional currency and foreign currencyAccounting system for converting foreign currency into functional currencyAccounting system for converting functional currency into presentation currencyChoosing and deciding functional currency Accounting for effect of foreign exchange differences in an individual company’s financial statementsTranslating and accounting for foreign currency into functional currencyDealing with foreign currency at initial recognitionDealing with foreign currency assets and liabilities in subsequent periodsIdentifying monetary and non-monetary itemsAccounting for non-monetary items remeasured at fair value, net realisable value or recoverable amountTracking realised and unrealised foreign exchange gain and loss When an entity’s presentation currency is difference from functional currencyProcedures for translating functional currency into presentation currencyHow to translate an entity’s profit or loss and other comprehensive income into presentation currencyHow to translate an entity’s assets and liabilities into presentation currencyDealing with translation foreign exchange gain or loss as a resulting translating functional currency into presentation currency Effect of foreign exchanges differences on business combinations:Foreign exchange on consolidated goodwillForeign exchange on fair value adjustments Foreign subsidiary’s functional currency is different from the group’s presentation currencyProcedures for translating functional currency of a foreign subsidiary into presentation currency of the parent for consolidation purposesHow to handle foreign exchange translation reserve arising foreign subsidiaries and associates:Presentation in other comprehensive incomeReclassification adjustment upon disposalTranslating foreign associate’s functional currency into presentation currency of an investor for equity accounting purposesThe effect of hyperinflation on translating functional currency into presentation currency Accounting for foreign exchange difference arising from net investment in foreign subsidiaries and associates:Monetary item in the functional currency of the subsidiaryMonetary item in the functional currency of the parentMonetary item in neither functional currency of parent nor subsidiary Foreign currency and statement of cash flows:Effect of realised and unrealised foreign exchange on statement of cash flowsPreparing and presenting consolidated statement of cash flows involving foreign subsidiaries and associates Accounting for foreign currency derivative instruments:How to use derivatives to manage foreign exchange exposureForeign currency forward/future contracts:Accounting for foreign currency forward/future contractsAccounting for foreign currency cash flow hedge and fair value hedgeBasis adjustment of foreign exchange gain or loss in a cash flow hedge Disclosure Requirements for foreign currency Foreign currency risk disclosureDisclosure requirement on functional currency and presentation currencyTraining MethodologyLecture style, Case studies, practical exercises and Interactive discussionsParticipants are required to bring along a calculator. Closing Date for Registration1 week before programme or until full enrolment
Training MethodologyLecture style, Case studies, practical exercises and Interactive discussionsParticipants are required to bring along a calculator. Closing Date for Registration1 week before programme or until full enrolment
Accountants, Auditors, Finance Directors and Managers
Category 1 = 14.00 Hours
28 Nov 2019 (9:00 AM - 5:00 PM)29 Nov 2019 (9:00 AM - 5:00 PM)
Registration is closed
02 Sep 2019 (9:00 AM - 5:00 PM)03 Sep 2019 (9:00 AM - 5:00 PM)
03 Sep 2018 (9:00 AM - 5:00 PM)04 Sep 2018 (9:00 AM - 5:00 PM)
For Members: $ 652.70 For Non-Members: $ 783.24
60 Cecil StreetISCA HouseSingapore 049709
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05 Mar 2021 - 05 Mar 2021
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