国际会计分析.ppt

Foreign currency translation in the united states SFAS No.52 was issued in Dec. 1981 and superseded SFAS No.8. 一. Objectives of SFAS NO.52(p70) 二. The definition of functional currency (p70) N: 记账本位币----企业经营所处的主要经济环境中的货币. 主要经济环境----企业主要产生和支出现金的环境,使用该环境中的货币最能反映企业主要交易的经济结果. 三、Three choices of FC (以美国为例) 1. Local currency is the functional currency. ----If the foreign subsidiary is a relatively independent entity that is the product of its local environment.(e.g.在英国的子公司使用的英磅) 2.Domestic currency (U.S. dollar) is FC ----If the foreign subsidiary is merely an extension of its U.S. parent company.（ e.g. 耐克在Indonesia 组装运动鞋并将其运回美国的工厂） 3.The third country currency is FC. ----FC is neither U.S. dollar nor the local currency. e.g. H.K. dollar for a U.S. company’s assembly operations in China. 三. Two views 1. Parent company perspective---SFAS No.8 and 52 all adopt it. ---If a foreign subsidiary is merely an extension of its US parent company, then the US dollar(I.e. domestic currency) is the functional currency. Approach （1）通过集团内部销售结算收回按转让价计算的货款 （2）从子公司派得股利 When the US dollar is deemed to be the functional currency of the foreign subsidiary,its financial statements are converted to US dollar using the temporal method. All translation gains and losses(折算损益) are included in the income statement and thus affect the company’s earnings for the period. (---temporal method) 2. Subsidiary perspective---SFAS No.52 ---if the foreign subsidiary is relatively independent entity that is the product of its local environment,then the local currency is the functional currency. When the local currency is determined to be the foreign subsidiary ‘s functional currency, Its financial statements are translated to US dollar using the current rate method. The cumulative translation adjustment (CTA,累计折算调整) is involved in the stockholders’ equity section of consolidated balance sheet. So the companies can avoid earnings volatility.(P70) (--current rate method) Co