Document ID: chunk:federal_register_of_legislation:F2018L00367:body:0:p7
Version: federal_register_of_legislation:F2018L00367
Segment Type: other
Provision Reference: 
Character Range: 16667–18576

exchange differences in all hedges would be recognised in profit and loss; and

    4.             translation of financial reports of foreign operations.

    A foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

         * Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.

         * Translation of financial reports should otherwise follow the requirements in AASB 121.

Basis of preparation

In completing this form, unless otherwise specifically stated, institutions are recommended to follow the Australian accounting standards regarding the:

     * interpretation/definition of items of income and expense;

     * measurement basis of items of income and expense; and

     * netting of items of income and expense.

    [1]  The definitions of 'credit union' and 'other ADI' in paragraph 17 of this Reporting Standard provide that Cairns Penny Savings & Loans Limited is to be treated in accordance with the reporting period requirements applicable to credit unions for the purposes of paragraph 10.
    [2]  Securitisation exposures are defined in accordance with APS 120.
    [3]  Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. Spot rate means the exchange rate for immediate delivery.
    [4]  Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the delivery of a non-monetary asset.