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IAS 21-The effects of changes in foreign exchange rates-an example of Pegasus

2018; Association of Food Technology, Turkey; Volume: 7; Issue: 1 Linguagem: Inglês

10.17261/pressacademia.2018.930

2146-7943

Erkan Deniz,

Global Financial Crisis and Policies

Purpose -In recent years, one example of situations emerging as a result of globalization which cause changes in accounting is exchange rate.The aım that is absorbing IAS21 and anlaysing Pegasus airline.Methodology -Interaction between countries, namely trading, bears that each country has its own currency and those countries prepare their financial statements in their own currency as well as they guide to change of exchange rates arising on financial state ments prepared by companies traded on international market.There are necessary explanations on how to deal with these changes under the heading of IAS 21 exchange rate effects.Findings-This study briefly focuses on the purpose and scope of the standard to which IAS 21 refers, the concept of the valid currency in the Standard, the net investment in foreign operations and the disclosure of monetary and non-monetary items.Conclusion-it is explained how the changes occuring in the exchange rate will be accounted for and how this accounting will be reflected in the financial statements.For this purpose, how the effects of exchange rate changes on the financial statements of the airline company, Pegasus, which is open to public, have been examined.