Temporal Method

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August 31, 2024 4 min read Definitions

Temporal Method: Foreign Currency Translation

Finance Accounting International Accounting Standards Foreign Currency Translation Temporal Method Exchange Rates IAS 21 Financial Reporting

A comprehensive overview of the temporal method, a technique for converting foreign currency transactions using the exchange rate from the date of the transaction. Contrasted with the closing-rate method, the temporal method takes exchange gains or losses to the profit and loss account.

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