According to IFRSs (1999: 10.2), a transaction in foreign currency is: "A transaction that is denominated or requires settlement in a foreign currency."
Meanwhile, according to Frederick, foreign currency transactions (foreign currency transactions), namely: "Whose Transactions terms are stated in a currency other than the entity's functional currency." (Frederick 2002: 210)
Thus, transactions in foreign currency is a transaction that occurs in different currencies, and requires the completion also in different currencies. Financial Accounting Standards classify transactions that are included in the foreign currency transactions.
According to the Financial Accounting Standards: "foreign currency transactions, including transactions arising when an entity:
a. Buy or sell goods or services whose price is denominated in a foreign currency.
b. Borrowing (debt) or loan (debt) funds are denominated in a foreign currency.
c. Becomes a party to an agreement in foreign currencies that have not been implemented, or
d. Acquire or remove assets, cause or settle liabilities, denominated in a foreign currency. "(Financial Accounting Standards 1999: 10.2)
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