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TRANSLATION OF FINANCIAL STATEMENTS OF FOREIGN AFFILIATES

LEARNING OBJECTIVES

images Distinguish between the current exchange rate and the historical exchange rate.

images Understand the objectives of financial statement translation.

images Identify the functional currency of a foreign entity.

images Compare the two methods used to convert the financial statements of a foreign entity into U.S. dollars.

images Distinguish between the circumstances under which each of the two methods is appropriate under current GAAP.

images Explain the factors involved in translating the statements of a foreign entity operating in a highly inflationary economy.

images Translate the statements of a foreign entity when the functional currency is the local ...

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