What does the term functional currency mean? How is the functional currency determined under IFRS and under U.S. GAAP?

Q: Explain the foreign currency swaps and why are they undertaken? Explain the functional currency and…

A: A foreign currency swap, also known as an FX swap, is an agreement between two foreign parties to…

Q: the reporting of FX. What are the major differences in foreign currency accounting standards between…

A: Foreign currency Translation In the Foreign currency Translation the determination of functional…

Q: What can be understood from Foreign Exchange Rates?

A: Foreign exchange rate: A foreign exchange rate is the comparative value among two currencies. Merely…

Q: What determines a country’s net international investment position

A: The Net International Investment Position is basically the quantity after casting off the outside…

Q: Give full definition of the market for foreign exchange.

A: The cross-border flow of money gives rise to foreign exchange. Foreign exchange refers to foreign…

Q: Discuss the concept of functional currency under SFAS No. 52. What purpose does the functional…

A: Statement of financial accounting standard number 52 is the one which is amended from time to time…

Q: Under the fixed exchange rate system, what was the currency against whichall other currency values…

A: Answer: Foreign exchange rate is the currency exchange rate system in which a country’s central bank…

Q: Define currency appreciation

A: Answer: The meaning of currency appreciation is nothing but an rise of one currency’s value…

Q: What are pegged exchange rates?

A: Pegged exchange rate: It is otherwise called a fixed exchange rate, which is a kind of conversion…

Q: Define spot rate (foreign exchange)

A: Spot rate (foreign exchange):  Spot rate is the present exchange rate at which a pair of currency…

Q: Explain the concepts of Local Currency, Functional Currency and Presentation Currency with suitable…

A: SOLUTION-1 NOTE= AS YOU UPLOAD THE MULTI PARTS ,PLEASE TRY TO UNDERSTAND AS PER BARTLEBY GUIDELINES…

Q: what does it mean by " How secure are documentary payment terms" in international trade?

A: International trade refers to exchange of the services and the goods between nations. Consumers and…

Q: Define domestic currency

A: The domestic currency is a currency that is the local currency for every country. Every Trade…

Q: A. Discuss the functional currency approach to foreign currency translation. B. Discuss the terms…

A: (A) A functional currency is the main currency that a company conducts its business.It represents…

Q: Explain the rule for translating the Financial Statements of Foreign Operations from Local Currency…

A: Note: As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: Define foreign currency hedges.

A: Definition:   Hedge: The process through which the risk associated with a particular project, can be…

Q: What factors create a foreign exchange gain on a foreign currency transaction? What factors create a…

A: Factors creating foreign exchange Gains or losses: 1) Having an exposure of receivables and payable.…

Q: What are some of the transactions or activities that results in the demand of foreign currency

A: In an economy or in a country there are different economic and commercial transactions that lead to…

Q: What is foreign currency?

A: In terms of finance, foreign currency is a familiar term in FOREX (Foreign Exchange) transactions.

Q: This subsidiary's functional currency is a foreign currency. What total should Orchid's balance…

A: Foreign Currency Financial Statements:   Foreign currency financial statements are those statements…

Q: Explain the rule for translating the Financial Statements of Foreign Operations from Functional…

A: The objective of IAS 21 is to prescribe how to include foreign currency transactions and foreign…

Q: What is a convertible currency?

A: Introduction: A convertible currency that might be swapped for a foreign currency. Currency…

Q: The overall approach under PAS 21 is for an entity to translate foreign currency items and…

A: An entity’s functional currency is the currency of the primary economic environment in which the…

Q: Do you think Balance of Payment and its different components have any role in determining the…

A: Balance of Payments: It is the difference in the money flowing in the country & the money…

Q: What are the consequences of accounting for foreign currency translation on financial statement…

A: Introduction:   According to IAS 21, if an entity has an activity in a foreign nation, its financial…

Q: Describe guidelines for determining when foreign currency financial statements are to be translated…

A: The Current rate method applies the current exchange rate as on the balance sheet date while…

Q: What is meant by spot rate in case of foreign currency transaction?

A: Spot rate is the rate at which currencies can be exchanged right away. It is the current market…

Q: Under what circumstances would a multinational company elect to enter into a currency swap…

A: A currency swap agreement is an agreement between two counterparties, used to hedge the possible…

Q: Based on IMF's "de facto classification" on exchange rate regime, a currency that is mainly…

A: The IMF's de facto classification includes - exchange arrangements with no separate legal tender,…

Q: A) Explain the concepts of Local Currency, Functional Currency and Presentation Currency with…

A: As per IAS 21 " Effects of changes in foreign exchange rates", an entity needs to determine its…

Q: What is foreign exchange rate?

A: The foreign exchange rate is the relative representation of domestic currency in terms of value of…

Q: In what ways does IFRS differ from U.S. GAAP with respect to the translation of foreign currency…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: EXPLAIN THE MODE OF PAYMENT IN FOREIGN CONTRACTS.

A: A foreign exchange contract is a legal arrangement in which the parties agree to exchange a defined…

Q: Describe the major actors in the foreign exchange market and their roles

A: The foreign exchange market is also known as the Forex, it is a market for the changing home…

Q: what are implications for analysis of financial statements that result from the accounting for…

A: As per IAS 21 if any has an operation in a foreign country then the financial statements of such an…

Q: Define convertible currency

A: A convertible currency is the one that is readily available to purchase other currencies and is not…

Q: What are the two major issues related to the translation of foreign currency financial statements?

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Explain the rule for translating the Financial Statements of Foreign Operations from Local Currency…

A: Overseas currency translation is the accounting process by which an international company converts…