国际会计学第六章ppt课件

Choi/Meek,6/e*InternationalAccounting,6/eFrederickD.S.ChoiGaryK.MeekChapter6:ForeignCurrencyTranslationOutlineResultsofoperationsReasonsfortranslationBackgroundandterminologyFinancialstatementeffectsofalternativetranslationratesForeigncurrencytranslationTranslationaccountingdevelopmentForeigncurrencytranslationandinflationChoi/Meek,6/e*LearningObjectivesWhydofirmstranslatefromonecurrencytoanother?Whatisthedifferencebetweenaspot,forward,andswaptransaction?Whatexchangeratesareusedinthecurrencytranslationprocessandwhataretheirfinancialstatementeffects?Howdoesatranslationgainorlossdifferfromatransactionsgainorloss?LearningObjectivesIstheremorethanonewayoftranslatingfinancialstatementsfromonecurrencytoanother?Ifso,whatarethey?Howdoesthetemporalmethodofcurrencytranslationdifferfromthecurrentratemethod?Whatistherelationshipbetweencurrencytranslationandinflation?ResultsofoperationCase:AlcanCorporationPerformanceisimpactedbyforeigncurrencytranslationReportedcurrency:USDForeigncurrency:Canadian,Australiandollars,EuroImpactsonAlcan'soperatingresultsRevenueandexpenseConsolidationForeigncurrencytransactionsCase:Alcan’sincomeAlcan’sglobaloperationDoreportedcurrencyeffectsmatter?YesRelationb/tchangesincurrencyvaluesandstockreturnsPredictingchangesinearningsMeasureafirm’sexchangerateexposureImplicationforstatementreadersFigureoutthenatureofforeignexchangegainsandlossesHowthesenumbersarederivedandwhattheymean?Choi/Meek,6/e*WhydoFirmsTranslate?PreparingconsolidatedfinancialstatementsAnaggregateviewTotaloperationsbothdomesticandforeignRecordingofforeigncurrencytransactionsforeigncurrencysales,purchases,borrowingorlendingintheconsolidatedentity’sreportingcurrencyMeasuringafirm’sexposuretoforeignexchangeriskforeigncurrencyriskCommunicatingwithforeignaudiences-of-interestconveyaccountinginformationtonon-domesticusersBackgroundandterminologyTranslation:TheprocessofrestatingfinancialinformationfromonecurrencytoanotherAchangeinmonetaryexpressionConversion:ThephysicalexchangeofonecurrencyforanotherForeignexchangemarketMarketvalueSpot,forward,orsChoi/Meek,6/e*Choi/Meek,6/e*TerminologySpottransactions:thephysicalexchangedeliverytakesplaceimmediatelySpotmarketrateDifferentinflationratesamongcountriesDifferentnationalinterestsExpectationaboutthedirectionoffutureratesDirectquoteversusindirectquoteBidquoteversusaskquoteChoi/Meek,6/e*Choi/Meek,6/e*AccountingforSpotTransactionsAforeignexchangegainorlossisrecordedwhenevertheexchangeratechangesbetweentheoriginaltransactiondateandthesettlementdate,orbetweentheoriginaltransactiondateandthefinancialstatementdateshouldfinancialstatementsbepreparedpriortosettlement.Example:OnSeptember1,acalendaryearU.S.manufacturersells,on90-daycredit,goodstoaSwedishimporterforSEK1,000,000.Thedollar/kronaexchangerateis$0.14=SEK1onSeptember1,$0.13=SEK1onSeptember30,and$0.11=SEK1onDecember1.TerminologyForwardtransaction:agreementstoexchangeaspecifiedamountofonecurrencyforanotheratafuturedate.S:involvesthesimultaneousspotpurchaseandforwardsale,orspotsaleandforwardpurchaseofacurrency.TakeadvantageofhigherinterestrateinaforeigncountryAgainstunfavorablemovementExample:SwissfrancvsU.S.dollarChoi/Meek,6/e*Choi/Meek,6/e*TheproblemWhatistheproblemindealingwithforeigncurrencytranslation?CurrencyfluctuationsEspeciallyinEasternEurope,LatinAmerica,andcertainpartsofAsiaDatafromtheFederalReserveBankthatindicatethefluctuationTherefore:theproblemistochoseanexchangeratefortranslationFinancialstatementeffectsofalternativetranslationratesAlternativetranslationrate:CurrentrateTheexchangerateprevailingasofthefinancialstatementdateHistoricalrateTheprevailingexchangeratewhenaforeigncurrencyassetisfirstacquiredoraforeigncurrencyliabilityfirstincurredPreservetheoriginalcostAveragerateAsimpleorweightedaverageofeithercurrentorhistoricalexchangeratesChoi/Meek,6/e*ExchangegainsandlossesTranslationgainsandlosses:arisingfromtranslationofforeigncurrencyfinancialstatementsUnrealizedgain/lossTransactiongainsandlosses:arisingfromtranslationofforeigncurrencytransactionGainandlossesonsettledtransactions(realgain/loss)Gainandlossesonunsettledtransactions(unrealized)Examples(p131)Exhibit6-3(p132)Choi/Meek,6/e*Choi/Meek,6/e*IssuesassociatedwithfluctuatingexchangerateWhatexchangeratewasusedtotranslatedforeigncurrencybalancestodomesticcurrency?Whichforeigncurrencyassetsandliabilitiesareexposedtoexchangeratechanges?Howaretranslationgainsandlossesaccountedfor?ForeigncurrencytransactionForeigncurrencytransactionsoccurwheneveranenterprisepurchasesorsellsgoodsforwhichpaymentismadeinaforeigncurrencyorborrowsorlendsforeigncurrencyFunctionalcurrencyistheprimarycurrencyinwhichittransactsbusinessandgeneratesandspendscash.ExamplesEurosfortheBelgiansubsidiaryofaU.S.parentTheIndianaccountsifaU.S.subsidiarywithBritishpoundsasitsfunctionalcurrencyAMexicanassemblyoperationofaU.S.parentChoi/Meek,6/e*Choi/Meek,6/e*AccountingforFCtransactionsFASNo.52(FASB,1981)thetransactiondateMeasureandrecordedinthefunctionalcurrencythebalancesheetdateTranslatetothereportingcurrencyForeignexchangeadjustmenttransactiongainsandlossesSingletransactionperspectiveTwo-transactionperspectiveSingle-transactionperspectivePremise:atransactionanditssettlementareasingleeventExchangeadjustmentsaretreatedasAnadjustmenttotheoriginaltransactionExampleOnSeptember1,2008,amanufacturersellsgoodstoaSwedishimporterfor1millionSwedishkrona(SEK).Theexchangerateis$0.14=1SEK,andthekronareceivableareduein90days,andtheU.S.operateinacalendar-yearbasis.Bytheendofthemonth,theexchangerateis$0.13=1SEK;onDecember1,2008,itis$0.11=1SEK.Choi/Meek,6/e*Two-transactionperspectiveSaleandcollectionaretreatedastwoseparateeventsRecognizeexchangelossoneachreportingdayUnsettledtransactionlossSettledtransactionlossExampleExhibit6-6Choi/Meek,6/e*Choi/Meek,6/e*TypesofTranslationMethodsSingleratemethod（currentratemethod）:appliesasingleexchangerate,thecurrentrate,toallforeigncurrencyassetsandliabilitiesMultipleratemethods:Usesomecombinationorcurrentandhistoricalratestotranslateforeigncurrencybalances.Current-NoncurrentmethodMonetary-NonmonetarymethodTemporalmethodChoi/Meek,6/e*Current(Single)RateMethodAllforeignassetsandliabilitiestranslatedatthecurrentrate.AllrevenuesandexpensestranslatedbyanappropriatelyweightedaverageofcurrentexchangeratesfortheperiodIssuesrelatedSinglerate(notsinglecurrency)PreservetheoriginalfinancialstatementrelationshipsPresumealllocalcurrencyassetsareexposedtoexchangeriskDistortperformancemeasurementExample(P136)Multiple-ratemethodCombinecurrentandexchangehistoricalratesCurrent-NoncurrentmethodMonetary-NonmonetarymethodTemporalmethodDistinctionsamongthesefourmethods(Exhibit6-7)Choi/Meek,6/e*Choi/Meek,6/e*Current-NoncurrentMethodCurrentassetsandcurrentliabilitiestranslatedatthecurrentrate.Noncurrentassetsandliabilitiestranslatedatthehistoricalrate.Revenuesandexpenses(excludingdepreciationandamortization)translatedataveragerates.DepreciationandamortizationchargesathistoricalratesineffectwhenrelatedassetsareacquiredAdvantagesanddisadvantages(?)Choi/Meek,6/e*Monetary-NonmonetaryMethodMonetaryassetsandliabilitiestranslatedatcurrentrates.Nonmonetaryassetsandliabilitiestranslatedathistoricalrates.Revenuesandexpenses,excludingdepreciation,amortizationandcostofsales,ataveragerates.Depreciation,amortizationcharges,andcostofsalesathistoricalratesineffectwhenrelatedassetsareacquired.Advantagesanddisadvantages(?)Choi/Meek,6/e*TemporalMethodMonetaryassetsandliabilitiestranslatedatthecurrentrate.NonmonetaryitemsForeigncurrencybalances(FCB)athistoricalcost→historicalratesFCBatcurrentcostormarketvalue→currentrate.Revenuesandexpenses,andcostofsalesifinventoriesarecarriedatmarketaverageratesDepreciation,amortizationcharges,andcostofsaleswheninventoriesarecarriedatcosthistoricalratesineffectwhenrelatedassetsareacquiredAdvantagesanddisadvantages(?)Choi/Meek,6/e*FinancialStatementEffectsDifferentmethodresultindifferentadjustmentsExample:ThebalancesheetofahypotheticalMexicansubsidiaryofaU.S.-basedmultinationalenterpriseappearsinpesosinthefirstcolumnofexhibit6-8.ThesecondcolumndepictstheU.S.dollarequivalentsoftheMexicanpeso(MXN)balanceswhentheexchangeratewasMXN1=$0.11.ShouldthepesodepreciatetoMXN1=$0.09,severaldifferentaccountingresultsarepossiblewhenapplyingdifferenttranslationmethods(seeExhibit6-8and6-9).Choi/Meek,6/e*Choi/Meek,6/e*Whichmethodisbest?Whetherasingletranslationmethodisappropriateforallcircumstances?Whatareacceptableforeigncurrencytranslationmethodsandunderwhatconditions?Aretheresituationsinwhichcurrencytranslationmaybeinappropriate?Aretheresituationsinwhichcurrencytranslationsmayconfuseratherthanenlightenusers?Whichrateshouldbeused?Historical,current,averageBuyingandsellingratesSpotandforwardratesOfficialandfree-marketratesDividendremittancerates,(2)freemarketrates,(3)anyapplicablepenaltyorpreferenceratesTranslationgainsandlossesApproachestoaccountingfortranslationadjustments:DeferralWhy?(reasons)Whynot?DeferralandamortizationHowandwhy?PartialdeferralRecognizelossesassoonastheoccuranddefergainNodeferralRecognizeinincomeChoi/Meek,6/e*TranslationaccountingdevelopmentintheU.S.Pre-1965Thecurrent-noncurrentmethodincome1965-1975Exceptiontocurrent-noncurrentmethod1975-1981FASNo.8ThetemporalmethodNodeferral1981-presentFASNo.52Choi/Meek,6/e*FeaturesofFASB52andIAS21DifferenceSameobjectivesReflectinconsolidatedstatementsthefinancialresultsandrelationshipsmeasuredintheprimarycurrencyinwhicheachconsolidatedentitydoesbusinessProvideinformationcompatiblewiththeexpectedeconomiceffectsofanexchangeratechangeonanentity’scashflowsandequityBasedonthenotionofafunctionalcurrencyFunctionalcurrencycanbetheparentcurrencyFunctionalcurrencycanbethelocalcurrencyFunctionalcurrencycanbethecurrencyofathirdcountryChoi/Meek,6/e*TranslationwhenthelocalcurrencyisfunctionalCurrencyassetsandliabilitiesaretranslatedatcurrentrate;capitalaccountsathistoricalratesRevenuesandexpensesaretranslatedatcurrentrate,orweightedaveragerateTranslationgainsandlossesdisclosedasaseparatecomponentofconsolidatedequityTranslationwhentheparentcurrencyisfunctionalMonetaryassetsandliabilities,andnonmonetaryassetsvaluedatcurrentmarketpricesatcurrentrate;otherassetsnonmonetaryitemsandcapitalaccountsathistoricalratesRevenuesandexpensesataveragerates,exceptthoserelatedtononmonetaryitemsTranslationgainsandlossesresultingfromthetranslationprocessareincludedincurrentincomeTranslationwhenforeigncurrencyisfunctionalFirstmeasuredfromthelocalcurrencyintothefunctionalcurrency(temporalmethod)AndthentranslatedintothereportingcurrencyusingthecurrentratemethodException:Cumulativeinflationofthelocalcurrencyinthepreceding3yearsexceeds100%Denominatethestrongercurrency(parentcurrency)asfunctionalcurrencyTemporalmethodfortranslationChoi/Meek,6/e*MeasurementissuesReportingperspectiveWhathappenedtohistoricalcost?ConceptofincomeManagedearningsChoi/Meek,6/e*ForeignCurrencyTranslationandInflationTheexternalvalueofacountry’scurrencyisinverselyrelatedtoitsrateofinflation.IAS21permitsrestatementforlocalinflationpriortocurrencytranslation.FAS52requiresuseoftheparentcurrencyasthefunctionalcurrencyforforeignoperationslocatedinhyperinflationaryenvironments(i.e.,countrieswherethecumulativerateofinflationexceeds100%overathree-yearperiod).ForeignCurrencyTranslationelsewhereCanadaGainsandlossesaredeferredandamortizedU.K.Hyperinflationarycountries,firstadjustedtocurrentpricelevels,andthenthecurrent-ratemethodIASB(IAS21)LikeU.K.standardJapanCurrent-ratemethodforallcircumstancesTheEUNoprovision.PracticesvaryconsiderablyAppendix6-1TranslationandremeasurementunderFASNo.52CMcorporationCurrent-ratemethodTemporalmethodChoi/Meek,6/e*Choi/Meek,6/e*Choi/Meek,6/e*此课件下载可自行编辑修改，供参考！感谢您的支持，我们努力做得更好！