Foreign Currency Accounting


Note on Foreign Currency Accounting, created by Eylin Nunez on 01/07/2015.
Eylin Nunez
Note by Eylin Nunez, updated more than 1 year ago
Eylin Nunez
Created by Eylin Nunez almost 9 years ago

Resource summary

Page 1

transactions - are w/ a foreign entity to be settled/denominated in foreign currrency translation - foreign $ of a foreign entity expressed in domestic $ exchange rate - price of one unit expressed in another curency direct method -- domestic price of one unit of another currency ie 1GBP= $1.47USD indirect method - foreign price of one unit of domestic ie .68Euro = $1USD - Current exchange rate - = exchange at current date- Forward exchange rate - exchanging 2 currencies at specific future date- historical exchange - rate in effect at date of issuance/acquisition of assets- weighted average rate - calculated to take into acct fluctuations within a period- forward exchange contract - future specified date & rate at fixed amount of currencies of different countries- reporting currency - currency of reporting entity - functional currency - primary economic environment where entity operates- foreign currency translation - functional to reporting currency - foreign currency remeasurement - local to functional curremcy - Capital accounts are translated into the functional currency using the historical exchange rates.Rule: "Translation adjustments" are not included in determining net income for the period but are disclosed and accumulated as a component of other comprehensive income in consolidated equity until disposed of.However, gains or losses from remeasuring the foreign subsidiary's financial statements from the local currency to the functional currency should be included in "income from continuing operations" of the parent company.

Show full summary Hide full summary


Interim Financial Reporting
Eylin Nunez
Configuración Básica
Karen Vázquez
GCSE History of Medicine: Key Individuals
James McConnell
Ionic Bonding
Evangeline Taylor
PMP Prep quiz
Andrea Leyden
GCSE Chemistry C1.1 - Fundamental Ideas in Chemistry
OCR AS Biology
Biological Psychology - Stress
Gurdev Manchanda
Chemistry 1
Peter Hoskins
Repaso de Revalida Enfermeria 2015
Francisco Rivera
The GoConqr Guide to End of Term Exams
Sarah Egan