Accounting for International Operations - Part 2 Self-Study Webinar

To provide participants with a practical understanding of accounting for foreign currency transactions, translation and remeasurement of foreign currency financial statements, functional currency determination, and foreign currency risk management under US GAAP.

DETAILED LEARNING OBJECTIVES

• Describe the purpose and scope of ASC 830, Foreign Currency Matters

• Differentiate between foreign currency transactions and the translation of foreign currency financial statements

• Define reporting currency, reporting entity, foreign entity, and functional currency

• Explain the significance of determining an entity's functional currency under ASC 830

• Distinguish between transaction risk and translation risk associated with foreign currency activities

• Identify the appropriate exchange rates used to initially record foreign currency transactions

• Explain how exchange gains and losses arise and how they are recognized in the financial statements

• Evaluate the economic indicators used to determine an entity's functional currency

• Differentiate between monetary and nonmonetary assets and liabilities for foreign currency accounting purposes

• Distinguish between translation and remeasurement and identify when each method is required

• Identify the exchange rates used to translate or remeasure various financial statement accounts

• Explain the accounting treatment for foreign currency translation adjustments

• Describe key considerations when preparing statements of cash flows involving foreign currency operations

• Explain the accounting requirements for changes in reporting currency under ASC 830

• Recognize the objectives and common techniques used to manage foreign currency risk

• ACS 830/IAS 21
• Foreign currency denominated transactions
• Translation of foreign currency financial statements
• Remeasurement
• Risk management
• Determining when hedging is appropriate