Page 75 - FAC4862_4 Unisa Test 4 slides
P. 75

THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES (TRANSLATION)



            Outcomes









            • Identify the functional currency of a foreign operation.



            • Translate the financial statements of a foreign

                operation of which the functional currency differs from

                the presentation currency of its parent, to the

                presentation currency of the parent.


            • Consolidate the translated financial statements of the


                foreign operation of which the functional currency

                differs from the presentation currency of the parent by

                applying normal consolidation techniques.


            • Translate the financial statements of a stand-alone

                foreign operation from its functional currency to a

                different presentation currency.






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