FAS 52 (ASC 830) & Derivatives: Unraveling the Mystery of FX Accounting

Overview: 

Get a clear understanding of accounting for foreign currency transactions and derivatives and discover the best way to handle them. This seminar will provide:

  • A detailed explanation of accounting for foreign currency transactions
  • A comprehensive review of ASC 830 (FAS 52) and translation/remeasurement of foreign currency denominated financial statements 
  • An overview of foreign currency hedges and related accounting treatments
Objective: 

To gain an in-depth understanding of accounting for foreign currency transactions, including translating financial statements, remeasuring foreign currency transactions and recording foreign currency hedging transactions. This seminar explains foreign currency derivatives, how they're used to mitigate risk and the related accounting treatment.

Emphasis: 
  • Determining the functional currency
  • Accounting for foreign currency transactions
  • Remeasurement gains and losses
  • Calculating foreign currency exposure
  • Intercompany accounts of foreign subsidiaries
  • Accounting for foreign currency translation adjustment
  • Proving the Cumulative Translation Adjustment (CTA)
  • Currency effects in the Statement of Cash Flows
  • Changing the functional currency
  • FX futures, forwards and swaps
  • Documentation and effectiveness testing
  • Accounting for FX derivatives: cash flow, fair value and net investment hedging
  • Foreign currency disclosure requirements regarding fair value and derivatives
Bottom
Prerequisite: 

Basic knowledge of financial accounting and reporting.
Please bring a calculator.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
8.00
NASBA Field of Study: 
Accounting