Section 25: Foreign Currency Translation
25.1
This section applies to the accounting for foreign currency. The financial statements shall be presented in Australian dollars. If an entity has transactions or balances that are not denominated in Australian dollars, it shall translate these amounts into Australian dollars as follows:
(a) transactions are translated using the exchange rate on the date of the transaction; and
(b) monetary asset and liability balances are translated using the exchange rate at the end of the reporting period. The effects of changes in the exchange rates are recorded in profit or loss.