In the dynamic landscape of international business, handling foreign currency accounting emerges as a complex challenge for many organizations. This course addresses the problem of navigating the intricacies of foreign currency transactions, from converting financial statements to dealing with the implications of hyperinflationary economies. The course agitates the complexities of foreign exchange risks and the uncertainty around choosing the right hedging instruments. The solution is presented through comprehensive guidance on every aspect of foreign currency accounting, including translation of financial statements, effective hedging strategies, and essential internal auditing tasks. Participants will gain the knowledge and skills to confidently manage foreign currency accounting issues, turning a potential problem area into a well-handled aspect of their financial operations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify the criteria for determining a functional currency.
Identify the issue that shifts a gain or loss out of other comprehensive income.
Identify the steps used to deal with the financial statements of an organization operating in a hyperinflationary economy.
Chapter 2
Recognize the basic accounting for foreign currency transactions.
Recognize what constitutes an effective hedge.
Recognize the various types of hedging tools.
Chapter 3
Recognize the types of disclosures related to foreign exchange.
Recognize the activities related to foreign exchange that internal auditors might engage in.
Major Topics
Financial Statement Translation
Foreign Currency Transactions
Other Foreign Currency Topics
