IAS 21 foreign exchange template
An Excel template that applies IAS 21 from the functional currency decision to the note. It translates foreign currency transactions at the spot rate and retranslates them at the reporting date, translates a foreign operation into the presentation currency, splits the exchange difference with non-controlling interests and rolls the translation reserve forward. It comes with a fully worked example for a fictitious Irish medical devices group with a US subsidiary.
What it does
Documents the functional currency against the IAS 21.9–11 indicators, with the conclusion and the reasons.
Records up to 20 foreign currency items – receivables, payables, borrowings, loans, assets at cost, advance payments (IFRIC 22) and items at fair value – with realised differences on settlement and unrealised differences at the closing rate, and shows where each one goes: profit or loss, OCI, or the exchange component of a fair value change (IAS 21.23–30).
Flags monetary items that form part of a net investment in a foreign operation and moves their differences to OCI on consolidation (IAS 21.15, 21.32–33).
Translates a foreign operation: income and expenses at average or actual rates, assets and liabilities at the closing rate, and the opening net assets, dividends and capital at their own rates, with the exchange difference analysed by source (IAS 21.39–41).
Translates goodwill and fair value adjustments at the closing rate (IAS 21.47) and splits the exchange difference with non-controlling interests under either goodwill method.
Rolls the translation reserve forward, with reclassification on disposal, re-attribution to NCI on a partial disposal and the consolidation journals (IAS 21.48–48D).
Drafts the accounting policy and the IAS 21.52 disclosures, covers the 2025 lack of exchangeability amendments with an estimated spot rate, and includes an 8-point checklist and 19 automatic checks.
What it does not do
It does not translate a hyperinflationary operation (IAS 29) or translate into a presentation currency different from the parent's functional currency.
It covers one foreign operation per copy; for several, use one copy per operation.
What you get
One Excel workbook (.xlsx) with Instructions, the blank template and a worked example: Ardmore Medical Group plc, with dollar receivables and borrowings, a sterling payable, Swiss equipment and an advance payment, a sterling equity investment at FVOCI, a net investment loan and an 80% US subsidiary with goodwill and fair value adjustments.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
IAS 21 The Effects of Changes in Foreign Exchange Rates as issued by the IASB at October 2026, including the Lack of Exchangeability amendments. The full scope and limitations are set out in the Instructions tab.
Consolidating the subsidiary? Use it with the free Consolidation template. Equity accounting a foreign associate? See the IAS 28 equity accounting template.
Designed for finance teams, auditors and advisers preparing or reviewing IFRS financial statements. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab. The worked example is fictitious.
