FRS 102: Foreign currency translation under UK GAAP
FRS 102 Section 30 sets out the requirements that apply to foreign currency transactions, foreign operations and translation of financial statements into a presentation currency.
The standard
The requirements regarding foreign currency translation are set out as part of FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.
FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.
ICAEW guides and support
Helpsheets and factsheets
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06-10-2023
Eddy James summarises the latest technical developments, internationally and in the UK, including two new IFRS Accounting Standards, amends to the IFRS for SMEs by the IASB and the FRC’s proposed changes to FRS 102.
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15-12-2022
This factsheet outlines the key requirements of FRS 102 in respect of hedge accounting and includes practical examples on their application.
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01-12-2015
Technical helpsheet issued to help members understand foreign currency translation under FRS 102.
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01-01-2014
Technical helpsheet to help ICAEW members to understand whether companies can prepare and file their accounts at Companies House in a foreign currency.
Bloomsbury Accounting and Tax Service
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Steve Collings
Financial Reporting for Unlisted Companies in the UK and Republic of Ireland
2022
A detailed, practical chapter on foreign currency translation for financial statements under UK GAAP, containing illustrative examples. Includes sections on the presentation currency, functional currency, reporting individual foreign currency transactions, translating financial statements of foreign operations, intra-group transactions, net investment in a foreign operation and disclosure requirements.
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Steve Collings
Group Accounts under UK GAAP
2022
A chapter on foreign currency accounting issues, in this title providing accountants and auditors with easy to follow guidance on the preparation of group accounts in line with UK GAAP. Topics include: Functional currency, Reporting foreign currency transactions in the functional currency, Presentation currency, Intra-group balances and transactions, Goodwill on acquisition of a foreign operation.
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Julia Penny
Accounting Principles for Tax Purposes
2021
A chapter on foreign currency translation, in this accessible introduction to the accounting rules relevant to tax computations in the UK. Written for tax practitioners who wish to gain a better understanding of accounting rules in the UK. Sections cover: FRS 102, Section 30; Determination of functional currency; Reporting foreign currency transactions in the functional currency; Net investment in a foreign operation; Translation into presentation currency; Comparison with International accounting standards; Taxation; The old system.
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Foreign currency translation
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 30 and IFRS, and covers determination of an entity’s functional currency, reporting foreign currency transactions, change in functional currency, use of a presentation currency other than the functional currency, disposal of a foreign operation, tax effects of exchange differences, change of presentation currency, and disclosure requirements.
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Example accounts
Model accounts and disclosure checklists for UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.
Further reading
Manuals and handbooks
The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and foreign currency or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com
GAAP 2019: UK reporting – FRS 102 (Volume B)
Deloitte, Croner-i, 2019
Comprehensive manual explaining how to apply FRS 102, with worked examples and extensive interpretation and guidance. The chapter on foreign currency translation covers the scope of Section 30, transactions in a foreign currency, presentation of results in another currency, and disclosures.
Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples throughout, dealing with day-to-day issues as well as complex questions. The chapter on foreign currency translation looks at the functional currency approach, foreign currency transactions, net investment in a foreign operation, change in functional currency, use of presentation currency, and disclosure.
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