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Accounting for Foreign Currency - v12 (Course Id 1752)

Updated / QAS / Registry
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Author : Jae K. Shim, Ph.D., CPA
Course Length : Pages: 36 ||| Review Questions: 16 ||| Final Exam Questions: 15
CPE Credits : 3.0
IRS Credits : 0
Price : $26.95
Passing Score : 70%
Course Type: NASBA QAS - Text - Technical - NASBA Registry
Primary Subject-Field Of Study:

Accounting - Accounting for Course Id 1752

Description :

In today’s modern economy, the growth of foreign operations is continuing upward and the number of companies with foreign operations has expanded. For example, a company often operates in different economic and currency environments to stay competitive in the global marketplace. Thus, it must have a process for reporting foreign currency balances to address several financial reporting issues, such as determining functional currencies, accounting for foreign currency transactions, and translating its foreign entity’s financial statements. ASC 830 Foreign Currency Matters provides guidance for transactions denominated in a foreign currency, and for operations undertaken in a foreign currency environment. Accounting for Foreign Currency is an accounting CPE class you can take online that covers key aspects of the guidance and includes specific examples to illustrate its application. Relevant references to and excerpts from ASC 830 are discussed throughout the course. 

Usage Rank : 0
Release : 2022
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 09-Jan-2023
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - Text - Technical - NASBA Registry - 1752

Keywords : Accounting, Accounting, Foreign, Currency, v12, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

After completing this course, you should be able to:
    1. Recognize key aspects of the accounting guidance on foreign currency matters
    2. Identify steps to remeasure foreign currency transactions to the functional currency
    3. Identify steps to translate foreign currency financial statements to the reporting currency
Course Contents :

Chapter 1 - Accounting for Foreign Currency

I. Basic Principles of ASC 830

A. Scope and Scope Exceptions

B. The Accounting Model for Foreign Currency Matters

Example 1: The Translation Process

II. Determine the Functional Currency

A. General Rules

B. Classes of Foreign Operations

C. Factors in Identifying the Functional Currency

Example 2: Determination of the Functional Currency

D. Highly Inflationary Environment

Example 3: Determination of Highly Inflation

E. Change in the Functional Currency

Example 4: Change in Functional Currency

Example 5: Functional Currency Changes Because the Economy is No Longer Highly Inflationary

The SECís View on Changes in Functional Currency

Review Questions - Section 1

III. Remeasure Foreign Currency Transactions to the Functional Currency

A. General Rules

Example 6: Remeasurement Requirements

B. Selection of Exchange Rates for Remeasurement

Monetary Accounts

Nonmonetary Accounts

C. Transaction Gains or Losses

Example 7: Determining Transaction Gains or Losses

D. Foreign Currency Transactions

Property, Plant and Equipment

Example 8: Depreciation of Fixed Assets


Example 9: Write-down of Inventory Measured Using FIFO


Debt and Equity Securities

Trading Debt Securities

Available-for-Sale Debt Securities

Held-to-Maturity Debt Securities

Equity Securities

Foreign Currency Leases

Lessee Accounting

Lessor Accounting

Comprehensive Illustration: Remeasurement of Foreign Currency Transactions to the Functional Currency

Accounts Receivable


Held-to-Maturity Debt Securities

Foreign Subsidiary Accounts

Review Questions - Section 2

IV. Translate Foreign Currency Financial Statements

A. General Rules

B. Selection of Exchange Rates for Translation

Example 10: Exchange Rate When Exchangeability is Lacking Temporarily

Balance Sheet

Income Statement

Cash Flow Statement

C. Translation Adjustments

Example 11: Reporting Gains or Losses

D. Highly Inflationary Environment

E. Derecognition

Disposition of a Foreign Entity

Example 12: Reporting Translation Adjustments

Partial Sale of Ownership Interest

Example 13: Partial Sale of Ownership Interest

Release of Cumulative Translation Adjustment Decision Tree

Cumulative Translation Adjustment in Impairment Assessment

Example 14: Impairment Assessment

Comprehensive Illustration: Translation of Foreign Entity Financial Statements

V. Other Matters

A. Intercompany Profits

Example 15: Elimination of Intercompany Profits

B. Hedging

C. Disclosures

1.    Aggregate Transaction Gains or Losses

2.    Cumulative Translation Adjustments

3.    Exchange Rate Changes

4.    Footnote Disclosure

5.    Excluding a Foreign Entity from Financial Statements

The SECís View on Disclosures, if the U.S. Dollar is Not the Reporting Currency

D. Difference between U.S. GAAP and IFRS

Determination of Functional Currency

Highly Inflationary Economy

Review Questions - Section 3


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