UK GAAP equivalent of IAS 21

Hello sir I want to know about the UK GAAP equivalent of IAS 21 so please provide me information about the same.

[Shaleen]

FRS 23 (IAS 21) is the Effects of Changes in Foreign Exchange Rates. It was issued in December 2004 and effective from 1 January 2005 and amended from December 2005.

Synopsis

FRS 23 is the equivalent of IAS 21. It prescribes the accounting for:

Transactions in foreign currencies

Translating the accounts of foreign operations prior to consolidation

About the FRS 23 (IAS 21)

Individual transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of the transaction.

At the date of settlement, cash transferred is recorded at the rate prevailing on the settlement date.

Any exchange difference arising is recognised in profit or loss.

The balance sheet of a foreign operation is translated using the closing rate, being the exchange rate at the reporting date.

The income statement is translated using the exchange rates at the dates of the transactions.

Where this is impracticable, an average rate for the year may be used provided that exchange rates do not fluctuate significantly.

Exchange differences arising are reported in the statement of total recognised gains and losses.

New UK GAAP

A new financial reporting framework in the UK is effective for accounting periods beginning on or after 1 January 2015.

The UK's Financial Reporting Council (FRC) has published five standards which together form the basis of the new UK regime.

The Financial Reporting Standard for Smaller Entities (FRSSE) has been withdrawn and small entities brought within the scope of FRS 102.

The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2016.