Page 5 - PowerPoint Presentation
P. 5

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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