2 Credits: Accounting
It’s quite common for a business to buy from companies located in other countries, or to sell goods and services to them. If so, the organization will likely have to deal with the accounting for foreign currencies. This course describes all accounting activities related to foreign currencies, with complete coverage of the steps needed to convert foreign currency financial statements into the reporting currency of the parent entity, as well as the accounting for basic foreign exchange transactions and hedging activities. In addition, the course addresses related topics, such as the additional steps required to close the books and internal auditing tasks related to foreign currencies.
You’ll find answers to many questions about foreign currency accounting in this course, including:
- What is the process for translating financial statements?
- Which exchange rates should I use as part of the translation process?
- What should I do if a subsidiary is located in a country that has a hyperinflationary economy?
- What is the nature of foreign exchange risk?
- What hedging instruments are available to mitigate foreign exchange risk?
- How do I account for a foreign exchange hedge?
Upon successful completion of this course, participants will be able to:
- 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.
- Recognize the basic accounting for foreign currency transactions.
- Recognize what constitutes an effective hedge.
- Recognize the various types of hedging tools.
- Recognize the types of disclosures related to foreign exchange.
- Recognize the activities related to foreign exchange that internal auditors might engage in.
May 22, 2023
There are no prerequisites.
CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
Meet The Experts
Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …