Functional currency, financial reporting practices

Related BrainMass Solutions

• How does the functional currency affect which method is used

  The reporting currency would be the currency that the parent company will use when preparing their financial statements, and the local (also called foreign) currency is anything other than the reporting currency that is used by the company.

• Emerging Issues Task Force: Multiple exchange rates

  The purpose of the task force is to reach consensus on how to account for unusual and new financial transactions that have the potential of creating diversity in known financial reporting procedures and practices.

• Accounting Reporting Criteria Comparision

  Ford will be required to measure all transactions, assets and liabilities in its functional currency; however it can choose to present its financial statements in a currency other than its functional currency.

• U.S. sells goods to Japan and denominates USD

  The solution examines functional currency, reporting currency and local currency for a U.S. company regularly selling goods to companies in Japan and denominates the transactions in U.S. dollars.

• 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.

• 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 currency transaction vs foreign currency translation

  The currency of a US company would be called its functional currency. Any transaction in another currency is called a foreign currency transaction.

• Google's foreign currency translation risks

  Foreign Currency Translations The functional currency of international subsidiaries is the local currency.

• International Financial Management: Example Problem

  The Statement of Financial Accounting Standards No. 52, which is issued by the Financial Accounting Standards Board or FASB, Foreign Currency Translation, prescribes reporting requirements for the translation of the financial statements of these foreign