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What are the major procedural differences in applying the current rate and temporal methods of translation? a. The major procedural difference is whether or not the balance is translated at current or historical exchange rates. 11.

The term presentation currency or reporting currency is an accounting concept defined by the International Accounting Standards (IAS 21) that refers to the currency in which an entity presents its financial statements. ... The currency in which most of the company's costs and expenses are generated.

For foreign subsidiaries whose functional currency is the currency of a hyperinflationary economy, IAS 21 requires the parent first to restate the foreign financial statements for inflation using rules in IAS 29, Financial Reporting in Hyperinflationary Economies, and then translate the statements into parent company ...

Determine the functional currency of the foreign entity. ... Remeasure the financial statements of the foreign entity into the functional currency. ... Record gains and losses on the translation of currencies. ... Current rate Method. ... Temporal Rate Method.

The Balance Sheet Under GAAP, current assets are listed first, while a sheet prepared under IFRS begins with non-current assets. ... GAAP calls for accounts to be listed in the order of liquidity or how quickly and easily they can be converted to cash.

A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements.

The functional currency is determined by looking at a number of relevant factors. This currency should be the currency in which an entity usually generates and spends cash. Functional currency should be the one in which the business transactions of an entity are normally denominated.

Applicable to public sector accounting and financial reporting, the IPSAS are, for the most part, based on the International Financial Reporting Standards (IFRS). ... There is no equivalent standard under IFRS. Another major difference is in the area of income taxes.

While recording on books of accounts and financial statements are denominated under functional currency, income tax returns are still required to be in Philippine Peso (PhP).

International Accounting Standard 21 (IAS 21) defines functional currency as the currency of the primary economic environment in which the entity operates . The same Standard defines presentation currency as the currency in which the financial statements are presented .