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Can you explain the difference between conversion and translation under IAS twenty one?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/24

1.Conversion is the process of exchanging amounts of one foreign for another. 2.Translation is required at the end of an accounting period

Chanie Teshome
by Chanie Teshome , Doctor , الشركة السعودية للكهرباء

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Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

1.Conversion is the process of exchanging amounts of one foreign for another.

2. Translation is required at the end of an accounting period when a company still holds assets or liabilities in its statement of financial position which were obtained or incurred in a foreign currency.

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