CONVERTING FOREIGN CURRENCY FINANCIAL

STATEMENTS

WHICH RATE?

•SPOT RATE •HISTORIC RATE

TEMPORAL METHOD

Dependent Entity

REMEASUREMENTS

MONETARY AT CURRENT

NON MONETARY AT HISTORIC

MONETARY ASSETS

Fair Value Accounts

NON-MONETARY ASSETS

Historic Cost Accounts

MONETARY LIABILITIES

Almost Everything

CURRENT RATE METHOD

Independent Entity

TRANSLATION

ASSETS AND LIABS AT

CURRENT

INCOME STATEMENT AT AVERAGE

BOTH METHODS

EQUITY AT HISTORIC

FUNCTIONAL CURRENCY

PARENT = TEMPORAL

METHOD

FOREIGN = CURRENT

RATE METHOD

HYPER INFLATIONARY ECONOMIES

GAINS AND LOSSES

REMEASUREMENT

TO

INCOME STATEMENT

TRANSLATION

TO

BALANCE SHEET

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