Accounting

Foreign Currency Transactions and Translations (Portfolio 5163)

  • Bloomberg Tax Portfolio 5163, Foreign Currency Transactions and Translations (Accounting Policy and Practice Series) reviews how a reporting entity: Determines the currency of the economic

Description

Bloomberg Tax Portfolio 5163, Foreign Currency Transactions and Translations (Accounting Policy and Practice Series) reviews how a reporting entity:• Determines the currency of the economic environment in which it primarily generates and expends cash;

  •  Measures any transaction in another currency; and, Includes, in its financial statements, the financial information of an operation that primarily generates and expends cash in the economic environment of another currency.

The Portfolio focuses on authoritative generally accepted accounting principles (GAAP) in the United States as set out in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 830, Foreign Currency Matters (the currency guidance).

This Portfolio does all of the following:• Paraphrases the currency guidance;

  •  Offers insight into the rationale for, and practical consequences of, the currency guidance;
  •  Provides context for and observations about illustrative examples set out in the currency guidance;
  •  At a high-level, notes how International Financial Reporting Standards on currency matters compare and contrast with authoritative GAAP.

The analysis is drawn from review of authoritative GAAP, but also from the supporting project materials of the Financial Accounting Standards Board—for example, the basis for board’s conclusions and related dissents and other project documentation.

This Portfolio may be cited as Bloomberg Tax Portfolio 5163, Green, Foreign Currency Transactions and Translations (Accounting Policy and Practice Series).

Table of Contents

I. Conceptual Overview
II. Functional Currency
III. Foreign Currency Transactions
IV. Translation of Financial Statements

James Green
Instructor
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