Accounting for Foreign Currency Transactions, Translations and Remeasurements

Accounting for Foreign Currency Transaction, Translations and Remeasurements

Companies with foreign operations or foreign business partners creates an additional level of complexity for the company’s financial reporting accountants. ASC 830- Accounting for foreign currency matters establishes the financial reporting requirements for accounting for foreign currency denominated transaction and the translation and/or remeasurement of consolidation of foreign currency denominated subsidiaries. Topics include:

Determining the functional currency, including our proprietary Functional currency evaluator
Changing the functional currency
Determining which exchange rates to use
Translation or remeasurement: what is the difference?
Foreign currency transactions
Reporting translation adjustments
Proof of the CTA account
FX disclosures
FX and the cash flow statement
Recording FX gains and losses on intercompany accounts

Session objectives:

Understand the pitfalls in accounting for foreign currency
Learn how to determining the appropriate exchange rate
Obtain a sound understanding of ASC 830
Review sample foreign currency transactions

Many companies rely too heavily on accounting systems to record FX effects and accountants sometimes struggle to explain how or why foreign currency transactions effect the reported results. This in-depth course will provide the detailed knowledge so that financial reporting accountants fully understand the impact of FX transactions and how FX denominated financial statements are consolidated.