23/10/2025
Why Every Accountant and Auditor Should Understand ISA 21
In today’s global business environment, foreign currency transactions have become part of everyday operations for most companies. That’s where ISA 21 (The Effects of Changes in Foreign Exchange Rates) plays a crucial role.
This standard provides guidance on how to reflect the impact of exchange rate fluctuations on financial statements — ensuring accuracy, transparency, and comparability across borders.
Studying ISA 21 helps you:
Accurately account for foreign currency gains and losses.
Understand how exchange rate movements affect assets, liabilities, and equity
Produce financial statements that truly represent a company’s economic position.
Whether you work in auditing accounting. or financial reporting mastering ISA 21 strengthens your professional judgment and ensures compliance with international standards.
Remember: ISA 21 isn’t just about numbers — it’s about presenting a fair and reliable financial picture in a world driven by global transactions
