The course aims to provide a practical and insightful application of the principles and requirements of FRS 21 The Effects of Changes in Foreign Exchange Rates on the group entity. Using detailed illustrations, the course systematically presents a step-by-step explanation of the application of FRS 21 on the translation of foreign operations for group accounts and the consolidation and equity accounting of these operations.

Programme Outline

The course will present detailed illustrations to explain and present the application of the principles and requirements of FRS 21 with respect to the translation of foreign operations.

During the course, the following areas will be discussed to provide participants with a comprehensive understanding of the translation of foreign subsidiaries and associates/joint ventures:
 

• Pitfalls to avoid in identifying the functional currency of an entity.
• Translation process relating to a foreign subsidiary’s financial statements.
• Translation of goodwill and fair value differentials of foreign subsidiaries and subsequent expensing and impairment.
• Translation of non-controlling interests and its proof of balance.
• Translation of a foreign associate for purposes of equity accounting.
• Proof of balance of an investment in a foreign associate.
• Other issues – translation of intra-group transactions

Learning Outcomes :

At the end of the course, participants would be able to:
 

• Evaluate the economic factors that determine the functional currency;
• Apply the FRS 21 process to translate foreign currency financial statements to the functional currency;
• Implement FRS 21 principles and requirements to the consolidation and equity accounting processes; and
• Analyse the translated non-controlling interests
• Analyze the translated investment in associates

 

Training Methodology

Lecture style with illustrations/exercises / case studie

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

Accountants, Controllers, Finance managers, Auditors and all accounting professionals with 3 or more years of experience.

Competency Mapping

Category 1 = 3.50 Hours

Programme Facilitator(s)