TAILIEUCHUNG - Lecture International accounting (4/e): Chapter 8 - Timothy Doupnik, Hector Perera

Chapter 8 - Translation of foreign currency financial statements. The topics discussed in this chapter are: Conceptual issues of foreign currency financial statements translation, difference between balance sheet exposure and transaction exposure, methods of financial statement translation, temporal and current rate methods illustrated,. | Chapter 8: Translation of Foreign Currency Financial Statements Conceptual issues of foreign currency financial statements translation Difference between balance sheet exposure and transaction exposure Methods of financial statement translation Temporal and current rate methods illustrated . GAAP, IFRS, and other standards related to translation Hedging of balance sheet exposure Chapter Topics 8-2 Learning Objectives Describe the conceptual issues involved in translating foreign currency financial statements Explain balance sheet exposure and how it differs from transaction exposure Describe the concepts underlying the current rate and temporal methods of translation Apply the current rate and temporal methods of translation and compare the results of the two methods Describe the requirements of applicable International Financial Reporting Standards (IFRS) and . generally accepted accounting principles (GAAP) Discuss hedging of balance sheet exposure 8-3 Two conceptual issues Appropriate exchange rate to be used in translating each financial statement item How should the translation adjustment that inherently arises from the translation process be reflected in the consolidated financial statements 8-4 Balance Sheet Exposure Assets and liabilities translated at the current exchange rate are exposed to risk of a translation adjustment When foreign currency appreciates, a net asset exposure results in a positive translation adjustment When foreign currency appreciates, a net liability exposure results in a negative translation adjustment Assets and liabilities translated at the historical exchange rate are not exposed to a translation adjustment 8-5 Translation Methods Current/Noncurrent Method Current assets and liabilities are translated at the current exchange rate Noncurrent assets and liabilities and stockholders’ equity accounts are translated at historical exchange rates There is no theoretical basis for this method Method is seldom used in any .

• Kế toán - Kiểm toán
• International accounting
• Lecture International accounting
• Foreign currency financial statements
• Translation methods
• Current rate methods
• Balance sheet exposure
• Lesson International Accounting
• International accounting main contents
• Main contents
• Accounting standards
• International convergence
• Financial reporting
• International accounting standard
• International federation of accountants
• Comparative accounting
• Accounting environment
• Accounting profession
• Accounting regulation
• Auditing research
• Accounting research
• International research
• Environment of international research
• International accounting environment
• International accounting standards board
• Chuẩn mực kế toán quốc tế
• International Accounting Standard 8
• Accounting policies
• Accounting estimates
• Borrowing costs
• Kế toán quốc tế
• Bài giảng Kế toán quốc tế
• International taxation
• International business decisions
• Corporate income tax
• Tax jurisdiction
• Corporate governance
• International trends
• International diversity
• The adjusting process
• Accrual accounting versus cash basis
• Other accounting principles
• Two categories of adjusting entries
• The adjusted trial balance
• Completing the accounting cycle
• The worksheet
• Closing the accounts
• Classifying assets
• Liabilities and payrol
• Current liabilities of known amount
• Current liabilities
• Accounting for payroll
• Worldwide accounting diversity
• Accounting diversity
• Inflation accounting
• Inflation accounting internationally
• Consolidated financial statements
• Foreign capital markets
• Financial statements
• International harmonization
• Comparative international accounting
• International differences
• International classification
• International Accounting Standard 39
• Financial instruments
• Financial liability
• Financial assets
• Merchandise inventory
• Accounting principles
• Inventory costing methods
• Inventory accounting
• Government grants
• Accounting for government grants
• International Accounting Standard 20
• Government assistance
• International business
• Foreign customer
• International financial reporting standards
• Intangible assets
• International transfer pricing
• Cost minimization
• International corporate social reporting
• Corporate social reporting