IFRS Snapshot: IAS 21 The Effects of Changes in Foreign Exchange Rates

Category: IFRS

IFRS Snapshot: IAS 21 The Effects of Changes in Foreign Exchange Rates


Apply to:

  • Accounting for transactions and balances in foreign currencies (EXCEPT derivatives within scope of IAS 39).
  • Translating results and financial position of foreign operations included in entity’s F/S through consolidation/ equity method.
  • Translating results and financial position into a presentation currency.

Does NOT apply to:

  • Hedge accounting for foreign currency items, including hedge of net investment in a foreign operation (see IAS 39).
  • Presentation in statement of CFs arising from transactions in a foreign currency/translation of CFs of foreign operation (see IAS 7).

IAS 21 The Effects of Changes in Foreign Exchange Rates

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Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.