IAS 21 Journal Entries | Effects of Changes in Foreign Exchange Rates

In this lesson, we explain what IAS 21 is and how we record journal entries under IAS 21 Effects of Changes in Foreign Exchange Rates. The question we'll be looking at can be seen below: On 14 September 2018, Waterworx ordered inventories from a supplier in Amsterdam, Netherlands. The invoice was to the value of EUR 75 245. The inventories were to be shipped free on board (FOB) from Amsterdam on 1 January 2019. The inventories were delivered in South Africa on 29 January 2019. The invoice is payable on 31 March 2019. Date | Exchange Rate | 14 September 2018 | 1EUR = ZAR16.00 | 01 January 2019 | 1EUR = ZAR16.4138 | 29 January 2019 | 1EUR = ZAR16.2342 | 28 February 2019 | 1EUR = ZAR15.9281 | 31 March 2019 | 1EUR = ZAR16.0300 Join this channel to get access to the perks:    / @counttuts   Check out other straightforward examples and business-related topics on our channel. We also offer one-on-one tutorials at reasonable rates as well as other accounting and tax services. Email us and/or visit our website or FaceBook page for more info. Connect with us: Email: [email protected] Our Website: https://Counttuts.com Our Facebook Page:   / counttuts   Support our Efforts: paypal.me/counttuts