Необменимостта на валутите и превалутирането при консолидацията на чуждестранни предприятия съгласно МСС 21
Lack of exchangeability and revaluation in the consolidation of foreign operations in accordance with IAS 21

Author(s): Nikolay Yovchev
Subject(s): Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: lack of exchangeability; functional currency; foreign enterprise; presentation currency; consolidated financial statements
Summary/Abstract: The report considers amendments to IAS 21, The Effects of Changes in Exchange Rates, effective 1 January 2025, which introduce new guidance on currency Lack of Exchangeability and its impact on the translation of financial statements of foreign entities. The two-step approach for assessing convertibility and estimating the spot rate for non-convertibility is presented, as well as the new disclosure requirements for the associated risks and effects. The principles for applying IAS 21 in consolidating foreign entities, including translation of financial statements and treatment of exchange differences, are also discussed in turn. Emphasis is placed on the role of IAS 21 in ensuring that the financial results of foreign entities are translated and presented correctly in the consolidated accounts to ensure that they are comparable and present fairly the financial position of the group. The report highlights the importance of the amendments as a step towards more accurate and transparent financial reporting in an environment of currency volatility.

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