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Explain exchange rate and exchange difference

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Reference no: EM132468106

IAS 21 The effects of changes in foreign exchange rates outlines how to account for transactions in foreign currencies and foreign operations, and also how to translate financial statements into a presentation currency.

Question 1:  Explain "exchange rate" and "exchange difference" in accordance to IAS 21 and demonstrate how the exchange differences arise.

Reference no: EM132468106

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