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hi and welcome to the short summary of the main principles of the standard is-21 the effects of changes in foreign exchange rates i am sylvia of cpdbox.com the place to be if you want to understand and apply ifrs easily i have created the ifrs package teaching you to apply ifrs helping you to pass your exams get your cpds if needed and lots of other great stuff for students and professionals so youre welcome to check everything out at cpdbox.com so in todays world the entities carry out their foreign activities in two basic ways they either have some transactions in foreign currencies for example they may buy goods from international suppliers and pay in foreign currency or they can equally have a foreign operation which can be a subsidiary associate joint venture or even a joint operation so on top of that any entity can decide to present its financial statements in some foreign currency other than their own so the presentation currency can be different and thats why there is the