Transcript
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
