Foreign operation's functional currency

Related BrainMass Solutions

• How does the functional currency affect which method is used

  If the company's functional currency is integrated with the parent company's, then the functional currency is considered the dollar, and the temporal method is used in order for the company to convert from the local currency (the foreign currency), to

• International Accounting - Foreign Currency Translation

  Functional currency is the currency of the business' primary economic environment. A foreign currency transaction will be translated only and only if the foreign entity's functional currency is the US dollar.

• How does accounting for foreign inflation differ from accounting for domestic inflation? What does double dipping mean in accounting for foreign inflation? Why are financial statements potentially misleading during periods of changing prices? What are some of the consequences of overstated earnings?

  foreign entity's financial statements from the functional currency to U.S. dollars.

• Translating the Financial Statements into U.S. Dollars

  Assuming that foreign currency is the functional currency translate the financial statements into U.S. dollars. See attached for calculations. Since the foreign currency is the functional currency, the current rate method should be used.

• Foreign Currency Translation: SFAS 52

  of foreign currency translation under SFAS 52.

• Translation of Financial Statements of Foreign Affiliates

  441748 Translation of financial statements when the local currency is the functional currency. Translation of financial statements when the U.S. dollar is the functional currency.

• Foreign Transaction vs Foreign Currency Transaction

  Gain or loss results from changes in exchange rates between the functional currency and the foreign currency in which the transaction is denominated.

• International Accounting Foreing Currency Translation

  Which exchange rate - current, historical, or average would be used to translate these accounts to parent currency assuming that the foreign currency is the functional currency?

• Foreign Branches of Companies and U.S. Tax Deduction

  At the time of the conversion, the Spanish operation's assets includes some local currency, accounts receivable from Spanish customers, an inventory of spare parts, and an extensive database of information regarding Spanish customers that the marketing