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| Home > News > Practice Directions > Practice Directions 1 |
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CCDG PRACTICE DIRECTIONS 1
| Measurement Currency And Presentation Currency |
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| 1. |
The CCDG has received queries from the business community on the application of FRS 21, The Effects of Changes in Foreign Exchange Rates and INT FRS 19, Reporting Currency - Measurement and Presentation of Financial Statements under FRS 21 and FRS 29. |
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| 2. |
The concern from businesses is whether FRS 21 or INT FRS 19 would prohibit a company from using the Singapore Dollar ("SGD") as its measurement currency or presentation currency. |
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| 3. |
INT FRS 19 introduces the concepts of measurement currency and presentation currency while FRS 21 uses the concept of reporting currency. Under INT FRS 19, the measurement currency should provide information about a company that is useful and reflects the economic substance of the underlying events and circumstances relevant to that company. If a particular currency is used to a significant extent in, or has a significant impact on, the company, that currency may be an appropriate currency as the measurement currency. |
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| 4. |
Having considered the provisions in FRS 21 and INT FRS 19, the CCDG is of the view that these standards do not prohibit a Singapore-incorporated company from using SGD as its measurement currency or presentation currency. A company is allowed to decide, based on its business requirements, which currency is most appropriate as its measurement or presentation currency. |
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Issued on 15 Aug 2003 |
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Last reviewed on 11 December 2007
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