Český finanční a účetní časopis 2010(4):42-52 | DOI: 10.18267/j.cfuc.85

Translation of Financial Statements in Other Currency according to IFRS because of Business Combination

Marie Zelenková
Ing. Marie Zelenková, Ph.D. - odborná asistentka; katedra finančního účetnictví a auditingu VŠE Praha.

Translation of financial reports into other currency is inconsistent area of financial reporting. There are lots of ways of such translation. This paper deals with classification of methods of translation of financial reports into other currency and also deal with development of IFRS approach in this. An entity is required to translate its financial statements (i.e. results and financial position) from its functional currency into a presentation currency (or currencies) using the method required for translating a foreign operation for inclusion in the reporting entity's financial statements. Exchange differences arising on translating financial statements in other currency. This paper deals also with reporting of this exchange differences.

Keywords: Functional currency; Reporting currency; Business combination; Translation of financial reports into other currency; Presentation currency.
JEL classification: M41

Published: December 1, 2010  Show citation

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Zelenková, M. (2010). Translation of Financial Statements in Other Currency according to IFRS because of Business Combination. Czech Financial and Accounting Journal, 2010(4), 42-52. doi: 10.18267/j.cfuc.85
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    References

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