Accounting for Foreign Currency Translation (ASC 830)
ASC 830 Foreign Currency provides accounting and reporting requirements for determining the functional currency, converting foreign currency transactions and translating the financial statements into the reporting currency. Watch this Video Next ➡️ • Analyzing Foreign Currency and Hedge Accou...
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Foreign Currency concepts in this video 👍
We are going to translate:
1) Income and Expense accounts
2) Assets and Liabilities
3) Equity
4) Retained Earnings
We are going to translate:
1) Intercompany Payables (Due to) and Receivables (Due from)
2) Investment in a Foreign Subsidiary
Definitions
1) Functional Currency 👉 the currency the entity transacts in and keeps its accounting records
2) Reporting Currency 👉 the currency the parent, consolidating and/or holding company prepares its financial statements in
3) Spot Rate 👉 the currency translation amount at a certain period of time
Accounting for Foreign Currency Course ➡️ • Foreign Currency Accounting Course - Revie...
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Chapters
0:00 Introduction
0:18 Definitions
0:43 Functional Currency
1:40 Remeasurement and Translation
2:41 Foreign Currency Translation
2:54 Remeasuring Income Statement Accounts
4:59 Remeasuring Assets and Liabilities
6:04 Remeasuring Capital / Stock
6:52 Remeasuring Retained Earnings
7:54 Remeasuring Intercompany Balances
9:55 Remeasuring Investment in Foreign Subsidiary