AS - 11 - The Effects of Changes in Foreign Exchange Rates

Foreign currency translation: exchange differences recognised or accumulated depending on monetary status and classification of foreign operations.

The Standard requires initial recognition of foreign currency transactions at the transaction-date rate (or practicable approximation); at each balance sheet date monetary items are reported at the closing rate while non-monetary items are reported at transaction-date or valuation-date rates. Exchange differences on monetary items are recognised in profit or loss as they arise, except where they relate to net investments in non-integral foreign operations and are accumulated in a foreign currency translation reserve until disposal.