tailieunhanh - Lecture International accounting (3/e): Chapter 7 - Timothy Doupnik, Hector Perera

Chapter 7 - Foreign currency transactions and hedging foreign exchange risk. The main contents of the chapter consist of the following: Foreign exchange markets, foreign exchange risk, accounting for foreign currency transactions, hedging, foreign currency forward contracts and options, accounting for hedges, cash flow hedges and fair value hedges. | Chapter Topics Foreign exchange markets Foreign exchange risk Accounting for foreign currency transactions Hedging Foreign currency forward contracts and options Accounting for hedges Cash flow hedges and fair value hedges Learning Objectives Provide an overview of the foreign exchange market. Explain how fluctuations in exchange rates give rise to foreign exchange risk. Demonstrate the accounting for foreign currency transactions. Describe how foreign currency forward contracts and foreign currency options can be used to hedge foreign exchange risk. Describe the concepts of cash flow hedges, fair value hedges, and hedge accounting. Demonstrate the accounting for forward contracts and options used as cash flow hedges and fair value hedges to hedge foreign currency assets and liabilities, foreign currency firm commitments, and forecasted foreign currency transactions. Learning Objective 1 Foreign exchange rate Purchase price of a foreign currency-- ., in February 2010 it cost about . dollars (eight cents) to purchase one Mexican peso. From 1945 to 1973 countries had exchange rates fixed to the . dollar. . dollar was fixed to gold at $35 per ounce. Balance-of-payments deficits in the . during the 1960s doomed this system, so, by March 1973 most currencies were allowed to float in value. Exchange Rate Mechanisms Independent float – currency value allowed to move freely with little government intervention. Pegged to another currency – currency value fixed (pegged) in terms of a particular foreign currency (., . dollar), and central bank intervenes to maintain the exchange rate. European Monetary System (Euro) – twelve countries use a single currency, which floats against other currencies such as the . dollar. Learning Objective 1 Foreign Exchange Rates Exchange rates, to the . dollar, are published in many places on the internet and in newspapers. Exchange rates are reflected both as US $ equivalent (direct quotes) and . | Chapter Topics Foreign exchange markets Foreign exchange risk Accounting for foreign currency transactions Hedging Foreign currency forward contracts and options Accounting for hedges Cash flow hedges and fair value hedges Learning Objectives Provide an overview of the foreign exchange market. Explain how fluctuations in exchange rates give rise to foreign exchange risk. Demonstrate the accounting for foreign currency transactions. Describe how foreign currency forward contracts and foreign currency options can be used to hedge foreign exchange risk. Describe the concepts of cash flow hedges, fair value hedges, and hedge accounting. Demonstrate the accounting for forward contracts and options used as cash flow hedges and fair value hedges to hedge foreign currency assets and liabilities, foreign currency firm commitments, and forecasted foreign currency transactions. Learning Objective 1 Foreign exchange rate Purchase price of a foreign currency-- ., in February 2010 it .

• Kế toán - Kiểm toán
• International accounting
• Kế toán quốc tế
• Bài giảng Kế toán quốc tế
• Lecture International accounting
• Foreign currency transactions
• Hedging foreign exchange risk
• Lesson International Accounting
• International accounting main contents
• Main contents
• Accounting standards
• International convergence
• Financial reporting
• International accounting standard
• International federation of accountants
• Comparative accounting
• Accounting environment
• Accounting profession
• Accounting regulation
• Auditing research
• Accounting research
• International research
• Environment of international research
• International accounting environment
• International accounting standards board
• Chuẩn mực kế toán quốc tế
• International Accounting Standard 8
• Accounting policies
• Accounting estimates
• Borrowing costs
• International taxation
• International business decisions
• Corporate income tax
• Tax jurisdiction
• Corporate governance
• International trends
• International diversity
• The adjusting process
• Accrual accounting versus cash basis
• Other accounting principles
• Two categories of adjusting entries
• The adjusted trial balance
• Completing the accounting cycle
• The worksheet
• Closing the accounts
• Classifying assets
• Liabilities and payrol
• Current liabilities of known amount
• Current liabilities
• Accounting for payroll
• Worldwide accounting diversity
• Accounting diversity
• Inflation accounting
• Inflation accounting internationally
• Consolidated financial statements
• Foreign capital markets
• Financial statements
• International harmonization
• Comparative international accounting
• International differences
• International classification
• International Accounting Standard 39
• Financial instruments
• Financial liability
• Financial assets
• Merchandise inventory
• Accounting principles
• Inventory costing methods
• Inventory accounting
• Government grants
• Accounting for government grants
• International Accounting Standard 20
• Government assistance
• International business
• Foreign customer
• International financial reporting standards
• Intangible assets
• International transfer pricing
• Cost minimization
• International corporate social reporting
• Corporate social reporting