国际会计学第六章.ppt

编辑ppt Choi/Meek, 6/e * Two-transaction perspective Sale and collection are treated as two separate events Recognize exchange loss on each reporting day Unsettled transaction loss Settled transaction loss Example Exhibit 6-6 Choi/Meek, 6/e * Choi/Meek, 6/e * Types of Translation Methods Single rate method （current rate method）: applies a single exchange rate, the current rate, to all foreign currency assets and liabilities Multiple rate methods: Use some combination or current and historical rates to translate foreign currency balances. Current-Noncurrent method Monetary-Nonmonetary method Temporal method Choi/Meek, 6/e * Current (Single) Rate Method All foreign assets and liabilities translated at the current rate. All revenues and expenses translated by an appropriately weighted average of current exchange rates for the period Issues related Single rate (not single currency) Preserve the original financial statement relationships Presume all local currency assets are exposed to exchange risk Distort performance measurement Example (P136) Multiple-rate method Combine current and exchange historical rates Current-Noncurrent method Monetary-Nonmonetary method Temporal method Distinctions among these four methods (Exhibit 6-7) Choi/Meek, 6/e * Choi/Meek, 6/e * Current-Noncurrent Method Current assets and current liabilities translated at the current rate. Noncurrent assets and liabilities translated at the historical rate. Revenues and expenses (excluding depreciation and amortization) translated at average rates. Depreciation and amortization charges at historical rates in effect when related assets are acquired Advantages and disadvantages(?) Choi/Meek, 6/e * Monetary-Nonmonetary Method Monetary assets and liabilities translated at current rates. Nonmonetary assets and liabilities translated at historical rates. Revenues and expenses, excluding depreciation, amortization and cost of sales, at average rates. Depreciation, amortization charges, and