Free ACCA FR Foreign Currency and Fair Value Study Guide

Overview

This module covers foreign currency accounting and fair value measurement, including functional vs presentation currency, monetary vs non-monetary items, and fair value hierarchy. Topics include exchange differences, net investment, and valuation techniques.

1. Foreign currency transactions (IAS 21)

• Functional vs presentation currency
• Monetary vs non-monetary items
• Exchange differences: recognition and disposal

2. Translation of foreign operations (IAS 21)

• Net investment and other comprehensive income
• Group translation basics
• Disposals and recycling

3. Fair value measurement (IFRS 13)

• Fair value hierarchy (Levels 1-3)
• Valuation techniques and inputs
• Disclosure requirements