'Current rate method' diaporamas de présentation

Chapter 10

Chapter 10. Translation Of Foreign Currency Financial Statements. Basic Issues. Selecting the appropriate method of translation For transactions: the temporal method For statements: temporal or current rate. Basic Issues. Treatment of exchange gains and losses

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EXPOSURE OF FOREIGN EXCHANGE RISK

EXPOSURE OF FOREIGN EXCHANGE RISK. Foreign Exchange Exposure is the sensitivity of the real domestic currency value of assets, liabilities, or operating incomes to unanticipated changes in exchange rates. EXPOSURE OF FOREIGN EXCHANGE RISK.

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Chapter Ten

Chapter Ten. Translation of Foreign Currency Financial Statements. International Acquisitions. Johnson & Johnson Buys Tibotec-Virco $320 Million. H. J. Heinz takes 4.9% interest in Kagome Company!. Vivendi pays $1.7 Billion for Houghton-Mifflin. Translation of Financial Statements.

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CHAPTER 19

CHAPTER 19. TRANSLATING FOREIGN STATEMENTS: THE TEMPORAL METHOD & THE FUNCTIONAL CURRENCY CONCEPT. FOCUS OF CHAPTER 19. The Temporal Method of Translation The Objectives of Translation under FAS 52 The Functional Currency Concept

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Chapter 4

Chapter 4. Translation of Foreign Currency Financial Statements. Translation Methods Current Rate Method. Current Rate Method

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CHAPTER 8

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4 types of exposure

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Highly Inflationary Economies

Highly Inflationary Economies. 10- 1. In highly inflationary economies, SFAS 52 mandates the use of the Temporal Method for translation. Why?. Disappearing Plant Problem If the Current Method were used, the US $ equivalent would be VERY small due to the rapidly increasing exchange rate.

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Chapter Ten

Chapter Ten. Translation of Foreign Currency Financial Statements. U.S. Dollar Perspective. functional currency is the U.S. dollar remeasure foreign currency balances temporal method of translation most assets at historical rates cash, receiv & payables at current rates

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