SUMMARY OF IAS 21 Objective of IAS 21 The objective of IAS 21 is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. [IAS 21.1] The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. [IAS 21.2] Key Definitions [IAS 21.8] Functional currency: the currency of the primary
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International Journal of Business and Economics Research 2013; 2(6): 134-141 Published online November 20‚ 2013 (http://www.sciencepublishinggroup.com/j/ijber) doi: 10.11648/j.ijber.20130206.13 Analysis of the determinants of trade balance: Case study of Tanzania Moses Joseph Shawa*‚ Yao Shen School of Economics‚ Shanghai University‚ Shanghai‚ China Email address: shamoses2002@yahoo.com(M. J. Shawa) To cite this article: Moses Joseph Shawa‚ Yao Shen. Analysis of the Determinants
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The trigger of the economic crisis in the 1930s is the crash in New York stock market. A few years ago before the crisis‚ New York stocks was rising continuously ‚ and Dow Jones stock index rocketed up from 191 points in early 1928 to 381 points in 1929 ‚ doubling within two years. New York markets suddenly crashed on October 24‚ 1929‚ stock prices plummeted one after another‚ the speed is so faster than an automatic recorder can keep track of ; On that day‚ 11 stock speculation investment veterans
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Business‚ Government and International Economy The business environment of a firm is the totality of external circumstances which the business faces and over which it has little or no control. The business environment of a firm includes 1. Market forces with their associated uncertainty 2. Forces of demand and supply originating from the rest of the world 3. The government policies 4. Nature i.e. the environmental factors Now‚ the scenario is changing. Indian market is getting connected to
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GOLD FLUCTUATION AND ITS IMPACT ON INDIAN ECONOMY INTRODUCTION History of gold International monetary system - gold or silver as a means of exchange. Gold is one of the most valuable economic indicators. Gold’s price elasticity is negative. Rising gold prices can change destiny of many unprofitable mines and turn them into a very successful business. Gold is a safe investment. Gold prices have been determined more by landed costs and by the rupee-dollar exchange rate. Factors affecting gold
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1.0 Introduction Devaluation occurs when the price of one currency is officially decreased against other currencies. Devaluation takes place in a fixed exchange system based on government policy decisions (Tembo 2012). Recently‚ the government of Malawi through the Reserve Bank of Malawi (RBM) has devalued the Malawi Kwacha by 49% and untied the currency from the dollar. The Reserve Bank of Malawi devalued the Malawi Kwacha exchange rate from K168 to K250 per United States dollar. This was done
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1. The trade and current account balances are negative which means they are in a deficit. This means that they are importing more than they are exporting. This also means that there is an excess supply of pesos in the world market. Since they are on a fixed exchange rate‚ the government is going to have to intervene and buy back pesos using its official reserves account. If Mexico’s foreign exchange balance is unable to effectively buy back pesos‚ they will be forced to devalue. 2. Since
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MULTIPLE CHOICE QUESTIONS: 1. Forecasts a) become more accurate with longer time horizons b) are rarely perfect c) are more accurate for individual items than for groups of items d) all of the above. 2. A fundamental analysis in exchange rate forecasting involves the following except . a) inflation rates b) interest rates c) money supply d) price trends 3. Which statement is not true about forecasting method? a) There is no single best method of forecasting. b) Technical
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| Currency devaluation and its effects on the economy | Focus on the Argentine economy | Agustina DalFabbro‚ Michele Mottola‚ Giuseppe Merlino‚ Saskia Diehl 26.05.2012 | Inhalt 1. Introduction 2 2. Convertibility and its problems in the 1999/2001 period 2 1.1 Previous Devaluation Process in Argentina 2 2. First moments of devaluation 3 2.1 Fixed exchange rate vs. floating exchange rate regimes 3 2.2 Two types of exchange rates and free floating currency 5 2.2 Free
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MONETARY POLICY DECISION – Pakistan – 2013 In the monetary policy statement of February 2013‚ the SBP highlighted two main challenges for monetary policy: to manage the balance of payment position and to contain the possible increase in inflation. Since then‚ SBP’s foreign exchange reserves have declined by another $2 billion; from 8.7 billion at end-January 2013 to $6.7 billion as of 5th April 2013‚ mainly due to debt payments. Contrary to expectations‚ however‚ year-on-year inflation has come
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