tailieunhanh - Lecture International accounting (4/e): Chapter 7 - Timothy Doupnik, Hector Perera

Chapter 7 - Foreign currency transactions and hedging foreign exchange risk. After you have mastered the material in this chapter, you will be able to: 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,. | Chapter 7: Foreign Currency Transactions and Hedging Foreign Exchange Risk 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 7-2 2 Learning Objectives 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. 7-3 Foreign Exchange Markets Foreign exchange rate Purchase price of a foreign currency 1945 –1973 Exchange rates fixed in . dollar . dollar was fixed in gold . dollar was fixed to gold at $35 per ounce 1960s Balance-of-payments deficits in the . March 1973 most currencies float in value 7-4 4 Foreign Exchange Markets Exchange Rate Mechanisms Independent float Currency value allowed to move freely Little government intervention Pegged to another currency Currency value fixed in terms of a foreign currency . . dollar Central bank maintains the exchange rate European Monetary System (Euro) Twelve countries use a single currency, Floats against other currencies . . dollar 7-5 5 Foreign Exchange Markets Foreign Exchange Rates Interbank rates Wholesale prices Banks charge one another Exchange of currencies Published on the internet and in newspapers Reflected Direct quotes (US $ equivalent) Indirect quotes (currency per US $) Direct quote reciprocal of indirect quote Indirect quote reciprocal of direct quote 7-6 6 Foreign Exchange Markets Spot rates Today’s price for purchasing or selling a foreign currency Forward rate Today’s price for purchasing or selling a foreign currency For some future date Premium | Chapter 7: Foreign Currency Transactions and Hedging Foreign Exchange Risk 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 7-2 2 Learning Objectives 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. 7-3 Foreign Exchange Markets Foreign exchange rate Purchase price of a foreign currency 1945 –1973 Exchange rates fixed in . dollar . dollar was fixed in gold . dollar was fixed to gold at $35 per ounce 1960s Balance-of-payments .

• Kế toán - Kiểm toán
• International accounting
• Lecture International accounting
• Foreign currency transactions
• Hedging foreign exchange risk
• Foreign exchange markets
• Foreign currency transactions
• 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
• Kế toán quốc tế
• Bài giảng Kế toán quốc tế
• 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