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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