Discuss foreign currency transactions. Include items such as:
1) Transaction date
2) Balance sheet date
3) Settlement date
Foreign currency translation means the process of expressing amounts denominated in one currency in terms of a second currency, by using the exchange rate between the currencies.
Transaction date means the date at which transaction is actually happened and the transaction is booked in the books of accounts of the company. For example, if X company sells $200000 worth of goods on credit to the ...
This solution of 260 words defines foreign currency translation and explains the associated concepts of recording transaction date, balance sheet date, and settlement date.