Module 7: Foreign Currency Transaction and Hedge Accounting:

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Module 7: Foreign Currency Transaction and Hedge Accounting:"

Transcription

1 Module 7: Foreign Currency Transaction and Hedge Accounting: Part 1: Foreign currency transactions occur when a company buys or sells in a currency other than its reporting currency. The objectives of translating foreign currency transactions are to accurately measure the impact of the transaction on the firm and to allow it to be integrated with the firm s other financial information. Market forces determine long-term exchange rates. Factors that result in changing a country s currency price are: inflation (higher inflation weakens currency decreases purchasing power); interest rates differential (higher interest rates strengthens currency); trade surplus/deficit (when exports are greater than imports, currency increases). A direct quotation provides the number of units of the Canadian dollar required to purchase one unit of foreign currency (Ex: CDN$1.12 = US$1.00) A indirect quotation provides the number of foreign currency units required to purchase one unit of the Canadian dollar (Ex: US$ = CDN$1.00) Current transactions denominated in a foreign currency: Recording current transactions: One transaction approach: the foreign currency denominated purchase/sale and the settlement of the resulting payable or receivable is considered a single transaction/economic event. The initial amount recorded for the purchase or sale is considered an estimate of the final amount, which is established on the settlement date. Problem: if settlement is not received until after year-end, Year-end adjustments must split inventory and COGS. Thus the amount recorded for purchase or sale is depending on how it is financed (loss/gain from a change in exchange rate is added to cost of inventory or sale price). Therefore AcSB rejected this approach. Two-transaction approach: the foreign currency denominated purchase/sale and the settlement of the resulting payable or receivable is considered two separate transactions. The purchase/sale is an operating transaction that is completed and recorded on the date of the transaction. The financing transaction is not complete until the payable/receivable is settled. Thus any change in the amount to be paid as a result of not settling on the day of sale is deemed to be a benefit/cost of financing and not charged to the cost of inventory/sale. CICA Handbook does not mention the two-transaction approach but it is the foundation of many Handbook recommendations Monetary assets and liabilities are fixed by contract in terms of a monetary unit. 1

2 Reporting short-term monetary balances: 3 alternatives for reporting short-term monetary balances at year end: historical rate; year end rate but defer gain or loss until settlement; or year end rate but recognize the gain or loss immediately. CICA recommends the third alternative as the information provided by the foreign exchange market is viewed as reliable and objective. Reporting short-term and long-term non-monetary balances: Examples of short-term non-monetary items: inventory, prepaid insurance, deferred revenue. Examples of long-term non-monetary items: capital assets, intangibles and share capital. Foreign currency transactions should be translated at the exchange rate in effect on the date of the transaction. Their translated amount becomes their historical cost. Since non-monetary items are not tied to cash payments, they are not exposed to changes in exchange rates and thus no further adjustments are needed. However, non-monetary items that are reported at market value should be restated to the year-end rate and gains and losses recognized immediately (similar treatment as short-term monetary items). Long-term monetary items: Prior to 1983, long-term monetary balances were reported at historical rate, no further adjustments were made. In response to the demand for consistent standards, AcSB considered 3 alternatives to historical cost for recording. 1. Adjust monetary assets and liabilities balances to year-end rate and defer any gains/losses until realized. Rationale: gains and losses will even out, but studies show that the trend in exchange rates tend to be increasing or decreasing and not even out. Thus this option does not provide the best matching and thus was rejected by AcSB. 2. Adjust monetary assets and liabilities balances to YE rate and defer and amortize gains/losses over the remaining life of the instrument. Rationale: some gains and losses would net out over time resulting in smoothing some of the foreign exchange rate fluctuations over the life of the instrument. Problem: out of sync with other countries; smoothing might mask ineffective management of exchange risk; and management can use hedging to manage foreign exchange rate risks. Between 1983 to December 2001, CICA recommended this method. 3. Adjust monetary assets and liabilities balances to year-end rate and recognized any gains/losses immediately. Rationale: Same treatment as short-term monetary balances, the market value provides more relevant information to statement users and the new treatment harmonizes Canadian GAAP with GAAP of other countries. Problem: including gains and losses in income would cause fluctuations in income and the firm would look more risky and less stable. 2

3 CICA recommends this alternative effective January 1, Sum: At each reporting date, all monetary assets and liabilities should be translated at the current rate. Foreign exchange gains/losses on monetary assets/liabilities would be recognized in income immediately. Part 2: Class example 1: Sam Ltd., a Canadian company, purchased supplies totalling 3,000,000 Euros from Ernie Co. on June 1, Payment is due in 6 months (no hedges). On December 1, 2002, Sam paid half of the accounts payable with cash and Ernie Co. agreed to accept a noninterest bearing note payable for the other half. The note payable is due December 1, Sam s year-end is December 31. Prepare the journal entries for 2002 for the accounts payable and note payable. June 1, 2002 C$1 = Euros1.5 December 1, 2002 C$1 = Euros 2 December 31, 2002 C$1 = Euros 2.3 June 1, 2002 Transaction Inventory... 2,000,000 Accounts payable... 2,000,000 (Euros 3,000, = 2,000,000) December 1, 2002 Partial settlement Accounts payable... 2,000,000 Notes payable ,000 Cash ,000 Exchange gain ,000 (Euros 1,500,000 2 = 750,000) (Euros 1,500,000 2 = 750,000) December 31, 2002 Year end Notes payable... 97,826 Exchange gain... 97,826 (Euros 1,500, = 652,174) 3

4 Part 3: Class example 2: On January 1, 2002, a Canadian firm borrowed 100,000 marks from a bank in Germany. Annual interest rate is 10% and due each Dec 31 for the next five years. Principal is due Dec. 31, Foreign exchange rates are: Jan. 1, 2002 C$0.60 = DM1.0; Dec 31, 2002 C$0.67 = DM1.0; Dec 31, 2003 C$0.59 = DM1.0. In accordance with current GAAP, determine the exchange gain/loss for the loan on the financial statements for Dec. 31, 2002 and Record all the related journal entries. Journal entries: Jan 1, 2002: Cash 60,000 Foreign currency loan 60,000 Dec 31, 2002: Foreign exchange loss 7,000 Foreign currency loan [DM100,000 ( )] 7,000 Interest expense [DM10,000 ( )/2] 6,350 Foreign exchange loss 350 Cash (DM100,000 x 10% = 10,000 x.67) 6,700 Dec 31, 2003: Foreign currency loan [DM100,000 ( )] 8,000 Foreign exchange gain 8,000 Interest expense [DM10,000 ( )/2] 6,300 Foreign exchange gain 400 Cash (DM100,000 x 10% = 10,000 x.59) 5,900 Balance Sheet: Foreign currency loan (100,000 x 0.67) $67,000 (100,000 x 0.59) $59,000 Income Statement 2002: Interest expense 6,350 Foreign exchange currency loss (7, ) 7,350 Income Statement 2003: Interest expense 6,300 Foreign exchange currency gain (8, ) 8,400 4

5 Part 4: Hedges: The purpose of a hedge is to modify a firm s exposure to risk (credit risk, interest rate risk, foreign currency risk, and liquidity risk). It fixes the amount required to settle an asset/liability that is denominated in a foreign currency. Guarantee a more secure and predictable return. A hedge can be an equal but opposite foreign currency item which fixes (and partially offsets) the gains or losses on the item that is hedged (also reduces potential gains). The most common form of hedge is a forward exchange contract (derivative). The forward exchange contract is between an exchange broker (i.e. bank) and a customer who agree to exchange currencies at a set price on a future date (fixed or option). For example, if a company holds a receivable (payable) denominated in a foreign currency, it could hedge this with a forward contract to sell (buy) the foreign currency it will receive (need) at a fixed forward exchange rate. Forward exchange contracts are executory contracts (neither party has fulfilled their obligation) and are firm commitments and thus they can be recorded in the books (optional). However, for reporting purposes, the receivable and payable will be offset against each other and only the net amount will be reported on the balance sheet as a forward contract. Hence, the Forward contract will be valued at its fair value. Hedge accounting (optional) is not the same as hedging. Hedge accounting is an accounting treatment that aims at matching the timing of income recognition on the hedging item to the timing of income recognition of the related hedged item. Hedging is designed to modify a firm s exposure to risk. Hedge accounting is applied only when gains, losses, revenues, and expenses on a hedging item would otherwise be recognized in net income in a different period than gains, losses, revenues, and expenses on the hedged item [ ]. A hedge of the net investment in a self-sustaining foreign operation or subsidiary is a hedge of the foreign currency exposure of the net investment (net assets) in the operation [ (g)]. (This is addressed in more detail in Module 8.) Handbook: To qualify for hedge accounting: 3 conditions must be met: 1. The company must identify the risks and state that hedge accounting will be used, 2. Formally document the hedge relationship and 3. Reasonable assurance that is will be an effective hedge (i.e. will offset gains and losses). Record hedges at a premium or at a discount: Foreign currency transactions are hedged at a premium when the forward rate is greater than the spot rate (asset = gain; liability = loss). Example: $1US = $1.50 Forward; $1US = $1.00 Spot Foreign currency transactions are hedged at a discount when the forward rate is less than the spot rate (asset = loss; liability = gain). Example: $1US = $1.00 Forward; $1US = $1.50 Spot See text example page 509 to 513 5

6 Fair-value hedge: Fair value hedge is a hedge of all or part of the risk exposure to changes in the fair value of financial instruments or unrecognized firm commitment [ (e)]. The hedged item and the hedging item are adjusted for the changes in fair value as a result of changes in the foreign exchange rates. These changes in fair value result in a loss or a gain, which is recognized in net income even when the hedged item has been designated as available-for-sale [ ]. (Versus: gains and losses on unhedged available-for-sale financial instruments are recognized in other comprehensive income). If the hedges were not perfect there would be a residual amount that would impact net income (amortization of premium or discount). The hedged item and the derivative hedging item are reported at fair value on the balance sheet as required by section For fair-value hedges of unrecognized firm commitments, the hedge price sets the purchase price [ ]. Example: Buy goods for US$1,000 to be delivered in 2 months. Spot rate today $1US = $1.10C. Immediately enters into a Forward contract at $1US = $1.08C. In 2 months will record the goods into their books at $1,080 (1,000 US x 1.08) regardless of spot rate on the delivery / transaction date (1.06). Section Review Exhibit Summary of accounting treatment: o On the transaction date: Record the purchase/sale and A/P or A/R at the spot rate. o On the Hedge date: Adjust payable or receivable to spot rate (gain or loss thru NI). Record the forward contract as a Payable and Receivable with the bank at the forward rate. Calculate the discount or premium, which is the difference between the spot rate and forward rate on the Hedge date. It is recognized over the terms of the forward exchange contract, which ensures proper matching o At year-end: adjust payable or receivable to spot rate (gain or loss thru NI) and forward contract to forward rate (gain or loss thru NI). Part of the resulting foreign exchange gain/loss will offset each other and the other part will be recognition of the discount or premium. Balance sheet: record forward contract at fair value (CR = liability; DR = asset) o On settlement date: adjust payable or receivable to spot rate (gain or loss thru NI) and forward contract to forward rate (gain or loss thru NI). Net gain or loss is the balance of any amortization of the premium or discount. Record cash as agreed, remove payable/receivable and remove balance in Payable and Receivable with the bank. 6

7 Part 5: Class example 3: Chapter 11, Problem 8 (page 533) En-Dur Corporation (EDC) is a Canadian company that exports computer software. On December 1, 2005, EDC shipped software products to a customer in South Africa. The selling price was established as 750,000 rand, with payment to be received on March 1, On December 3, 2005, EDC entered into a fair value hedge with the Royal Bank at the 90-day forward rate of R1 = $ The fiscal year-end of EDC is December 31. The payment from the South Africa customer was received on March 1, Exchange rates were as follows: Spot Rates Forward Rates December 1, 2005 R1 = $0.741 December 3, 2005 R1 = $0.741 R1 = $0.781 December 31, 2005 R1 = $0.757 R1 = $0.785 March 1, 2006 R1 = $0.738 R1 = $0.738 Required: Part A: a) Prepare the journal entries to record all the above events. b) Prepare a partial balance sheet of EDC on December 31, 2005, that presents the accounts associated with the hedge. Part B: Assume that EDC did not enter into the hedge transaction on December 3, Prepare the journal entries to record the receipt of R750,000 on March 1, Part A: (a) December 1, 2005 Accounts receivable (R750, ) 555,750 Sales 555,750 December 3, 2005 Receivable from bank (C$) 585,750 Payable to bank (R750, ) 585,750 Premium = =.04 (750,000) = $30,000 Gain. December 31, 2005 Accounts receivable 12,000 Exchange gain/loss (R750,000 [ ]) 12,000 Exchange gain/loss 3,000 Payable to bank (R750,000 [ ]) 3,000 Net gain = $9,000 7

8 March 1, 2006 Exchange gain/loss 14,250 Accounts receivable (R750,000 [ ]) 14,250 Payable to bank (R750,000 [ ]) 35,250 Exchange gain/loss 35,250 Net gain = $21,000 Cash (R) 553,500 Accounts receivable (R) 553,500 Payable to bank (R) 553,500 Cash (R) 553,500 Cash 585,750 Receivable from bank 585,750 (b) En-Dur Corporation Balance Sheet As at December 31, 2005 Current assets Accounts receivable 567,750 Current liabilities Forward contract (1) 3,000 (1) Payable to bank (750,000 x.785) 588,750 Less: receivable from bank 585,750 Forward contract 3,000 Note: Receivable and payable with the bank are usually recorded in the firm s journals (because they are a firm commitment and can not be cancelled) but are NOT reported on the Balance Sheet (because they are executed contracts). However, the net amount of these two executed contracts is reported on the Balance Sheet as Forward contract. Recall an executed contract is when neither party has performed its obligation to the other. Part B: March 1, 2006 Cash (R) (R750, spot) 553,500 Exchange gain/loss 14,250 Accounts receivable (R750, YE rate) ,750 At year end, $12,000 exchange gain recognized thru NI (R750,000 [ ]) 8

9 Part 6: Cash-flow hedge: A cash-flow hedge is a hedge of the variability in cash flows of financial instruments, forecasted future transactions (expected to occur in the future that has not yet given rise to a recognized asset or liability) or unrecognized firm commitments [ f]. Hedge future cash flows thus the risk is not yet incurred but the firm takes steps to protect future cash flows against that potential variability. To qualify for a cash-flow hedge, the hedged items must subsequently generate future cash flows, which should be exposed to variability resulting from risk. Gains and losses on the effective portion of the hedge are reported in other comprehensive income [ (a)]. Gains and losses on the ineffective portion of the hedge are reported in net income [ (b)]. The associated gains or losses recognized in other comprehensive income should be reclassified into net income in the same period or periods during which the hedged item (asset acquired, liability incurred, or anticipated transaction) affects net income. If the company expects that all or a portion of a loss recognized in other comprehensive income will not be recovered in one or more future periods, that amount should be recognized into net income. A company may elect to account for a hedge of the foreign currency risk in a firm commitment as a cash-flow hedge [ ]. For cash-flow hedges of unrecognized firm commitments, the company may elect to amortize to net income over the life of the asset acquired or liability assumed any associated gains and losses previously included in other comprehensive income [ (a)] or to have the hedge price set the purchase price [ (b)]. Summary of accounting treatment if adopt hedge accounting: o Hedge date: Record the forward contract: set up Payable and Receivable with the bank at forward rate. Calculate premium or discount and the cost of sale or purchase based on the spot rate. o If a year-end prior to transaction date: adjust forward contract to the forward rate (unrealized gain/ loss held under OCI). Balance sheet: record forward contract at fair value (CR = liability; DR = asset). o On transaction date: record purchase/sale at spot rate and set up payable/receivable. Adjust forward contract to the forward rate (unrealized gain/loss held under OCI). Close OCI and AOCI (from year-end) to sale or purchase (part of premium/discount). o On settlement date: adjust payable or receivable to spot rate (gain or loss thru NI) and forward contract to forward rate (gain or loss thru NI). Net gain or loss is the balance of any amortization of the premium or discount. Record cash as agreed, remove payable/receivable and remove balance in forward contract (Payable and Receivable with the bank). Premium/ discount is split between cost of hedging (thru NI) and value of sale/purchase (value on hedge date final balance recorded in books). If do NOT adopt Hedge accounting: Do not use OCI close to NI. No adjustment to value of sale or purchase recorded at spot rate on transaction date. 9

10 Class example 4: Chapter 11, Problem 5 (page 531) On October 1, Year 6, Versatile Company (VC) contracted to sell merchandise to a customer in Switzerland at a selling price of SF400,000. The contract called for the merchandise to be delivered to the customer on December 1, Year 6, with payment to be received in Swiss francs on January 31, Year 7. On October 1, Year 6, VC arranged a forward contract to deliver SF400,000 on January 31, Year 7, at a rate of SF1 = $1.20. VC s year-end is December 31. The merchandise was delivered on December 1, Year 6; SF400,000 were received and delivered to the bank on January 31, Year 7. Exchange rates were as follows: Spot Rates Forward Rates October 1, Year 6 SF1 = $1.18 SF1 = $1.20 December 1, Year 6 SF1 = $1.17 SF1 = $1.21 December 31, Year 6 SF1 = $1.21 SF1 = $1.22 January 31, Year 7 SF1 = $1.19 SF1 = $1.19 a) Prepare the journal entries that VC should make to record the events described assuming that the forward contract is designated as a cash flow hedge. b) Prepare a partial trial balance of the accounts used as at December 31, Year 6 and indicate how each would appear on the company s financial statements. c) What would be the difference if they chose not to apply hedge accounting? Solution: (a) October 1, Yr 6 Receivable from bank (C$) agreed to receive 480,000 Payable to bank (SF400, ) 480,000 Premium = =.02(400,000) = 8,000 gain. Sales value on October 1 = $472,000 (400,000 x 1.18) December 1, Yr 6 Other Comprehensive Income 4,000 Payable to bank (SF 400,000 x ( ) 4,000 Accounts receivable (SF400, ) 468,000 Sales 468,000 Sales 4,000 Other Comprehensive Income (close to sales) 4,000 December 31, Yr 6 Accounts receivable 16,000 Exchange gain/loss (SF400,000 [ ]) 16,000 Exchange gain/loss 4,000 Payable to bank (SF400,000 [ ]) 4,000 Net gain = 12,000 10

11 January 31, Yr 7 Exchange gains and losses 8,000 Accounts receivable (SF400,000 x ( ) 8,000 Payable to Bank (SF400,000 x ( ) 12,000 Exchange gains and losses 12,000 Net gain = 4,000 Cash (SF) 476,000 Accounts receivable (SF400, ) 476,000 Payable to bank (SF400, ) 476,000 Cash (SF) 476,000 Cash (C$) agreed 480,000 Receivable from bank (C$) 480,000 Premium of $8,000 (16,000 gain 8,000 loss) is split between the cost of hedging and the value assigned to sales. Premium assigned to cost of hedging: $16,000 gain: Dec 31: $12,000 gain (16,000 4,000) plus Jan. 31: $4,000 gain (12,000 8,000) Premium assigned to sales: $8,000 loss: Sales value on October 1 $472,000 (400,000 x 1.18) less final balance of sales $464,000 (468,000-4,000) (b) Trial balance, December 31, Yr 6 DR CR Accounts receivable 484,000 B/S Sales 464,000 I/S Exchange gain/loss 12,000 I/S Receivable from bank* 480,000 Payable to bank*(400,000 x 1.22) 488,000 *A net amount of $8,000 Cr would appear on the BS: forward contract - current liability. (c) If did not apply hedge accounting: Dec. 1: Journal entry: do NOT use OCI Loss 4,000 Payable to bank (SF 400,000 x ( ) 4,000 Sales would remain at 468,000 Premium assigned to cost of hedging: $12,000 gain: Dec. 1: $4,000 loss; Dec 31: $12,000 net gain (16,000 4,000) plus Jan. 31: $4,000 net gain (12,000 8,000) Premium assigned to sales: $4,000 loss: Sales value on October 1 $472,000 (400,000 x 1.18) less final balance of sales $468,000 Premium = net gain $8,000 11

12 Part 7: Transnational financial reporting refers to reporting across national boundaries, that is, reporting financial results to user groups located in a country other than the one where the company is headquartered. Some strategies to accommodate foreign users are: 1. Provide unchanged financial statements Do nothing. 3 reasons: little need for foreign capital, sophisticated users, and language and currency is well understood around the world. This approach is cheap and easy for firm but increases costs to users, which can discourage them from investing. 2. Prepare convenient translations: Prepare statements using a common language such as English (or translate into the language of the foreign readers) but leave the figures in the currency of the home country and accounting principles unchanged. Relatively easy and inexpensive, foreign readers can read the financial statements which increase the audience. But the figures and accounting principles are un-translated / unchanged. 3. Prepare convenient statements: Prepare statements using a common language such as English and restate the figures to a common currency such as U.S. dollars. Foreign readers can read them and monetary amounts are expressed in reader s currency. But lose foreign appearance and can be misleading if reader does not realize that foreign GAAP is still used. 4. Restate financial statements on limited basis: Partially restate some figures or provide reconciliations to the foreign country s accounting policies in the notes to the financial statements. More convenient for the foreign readers to analyze and decrease penalties such as lower stock prices and higher interest rates related to the users when effectively communicate financial information. But is more costly and inconvenient for the company. 5. Prepare secondary financial statements: Issue new statements with the needs of the potential user in mind. Translate to their language and their currency and restate to a common GAAP such as IASC standards. Further reduce penalties, attract more international investment as easier and cheaper for readers to analyze. But it is the most expensive, requires two sets of books, and can disclose too much information to competitors. Criteria to consider to determine which approach to use: : Decision should be based on cost-benefit analysis : Who are the potential audience, what are the needs of the users and their level of sophistication : How well understood the local GAAP and international disclosure standards : The amount of capital raised outside of the country : How well the native language, currency and business environment is known THE END 12

Module 8: Translation and Consolidation of Foreign Subsidiaries:

Module 8: Translation and Consolidation of Foreign Subsidiaries: Module 8: Translation and Consolidation of Foreign Subsidiaries: Part 1: Foreign currency risk is the net potential gain or loss, which can arise from changes in the exchange rates, to the foreign currency

More information

ISSUES INVOLVING FOREIGN CURRENCY

ISSUES INVOLVING FOREIGN CURRENCY Advanced Accounting 1005-83B Issues Involving Foreign Currency Page 1 I. SFAS No. 52. "Foreign Currency Translation" ISSUES INVOLVING FOREIGN CURRENCY A. Background: In SFAS No. 8 "Foreign Currency Translation"

More information

An overview of FX Exposure Risk: Assessment and Management

An overview of FX Exposure Risk: Assessment and Management An overview of FX Exposure Risk: Assessment and Management June 2015 1. Introduction This report presents an overview of various types of foreign currency exposure, their impact on the financial statements,

More information

DERIVATIVE ADDITIONAL INFORMATION

DERIVATIVE ADDITIONAL INFORMATION DERIVATIVE ADDITIONAL INFORMATION I. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES A. Definitions and Concepts 1. Derivative Instrument A "derivative instrument" is a financial instrument that "derives"

More information

Tax accounting services: Foreign currency tax accounting. October 2012

Tax accounting services: Foreign currency tax accounting. October 2012 Tax accounting services: Foreign currency tax accounting October 2012 The globalization of commerce and capital markets has resulted in business, investment and capital formation transactions increasingly

More information

AS -11 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES IPCC PAPER 5 ADVANCED ACCOUNTING CHAPTER 2 CA. ANAND J. BANKA

AS -11 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES IPCC PAPER 5 ADVANCED ACCOUNTING CHAPTER 2 CA. ANAND J. BANKA AS -11 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES IPCC PAPER 5 ADVANCED ACCOUNTING CHAPTER 2 CA. ANAND J. BANKA OBJECTIVE An enterprise may carry on activities involving foreign exchange in two ways.

More information

New accounting standards for not-for-profit organizations

New accounting standards for not-for-profit organizations New accounting standards for not-for-profit organizations Special March 2011 Flash To our new readers welcome! To our existing loyal readers welcome back! So far, 2011 has been a very busy year, with lots

More information

Financial Instruments - Hedges. Section 3865

Financial Instruments - Hedges. Section 3865 Financial Instruments - Hedges Section 3865 Need for hedge accounting Mixed measurement and recognition models lead to timing differences Cost or amortized cost vs. fair value Other comprehensive income

More information

Foreign Currency Transactions and Hedging

Foreign Currency Transactions and Hedging Foreign Currency Transactions and Hedging History of Currency 1945-1973: US dollar was pegged to gold and other currencies were pegged to the dollar 1960 s: US had a balance of payments deficit o Other

More information

FOREIGN CURRENCY TRANSACTIONS 8-16. Initial Recognition 8-10. Reporting at Subsequent Balance Sheet Dates 11-12

FOREIGN CURRENCY TRANSACTIONS 8-16. Initial Recognition 8-10. Reporting at Subsequent Balance Sheet Dates 11-12 108 Accounting Standard (AS) 11 The Effects of Changes in Foreign Exchange Rates Contents OBJECTIVE SCOPE Paragraphs 1-6 DEFINITIONS 7 FOREIGN CURRENCY TRANSACTIONS 8-16 Initial Recognition 8-10 Reporting

More information

International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates

International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates Objective 1 An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or

More information

The Effects of Changes in Foreign Exchange Rates

The Effects of Changes in Foreign Exchange Rates STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 21 The Effects of Changes in Foreign Exchange Rates SB-FRS 21 The Effects of Changes in Foreign Exchange Rates was operative for Statutory Boards financial

More information

HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013

HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS

More information

Audited (Restated) (*)

Audited (Restated) (*) 31 December 2015 31 December 2014 31 December 2013 ASSETS Current assets 459.875.342 251.625.938 233.029.758 Cash and cash equivalents 5 123.908.125 123.909.277 101.043.123 Financial investments 6 -- 15.126.664

More information

Solution to Chapter 11 E11 1,3,4,5,6,7,9,12

Solution to Chapter 11 E11 1,3,4,5,6,7,9,12 Solution to Chapter 11 E11 1,3,4,5,6,7,9,12 E11-1 Exchange Rates a. Indirect exchange rates for pounds and dollars: $1.00 =.625 British pounds (1 pound / $1.60) $1.00 = 1.3514 Canadian dollars (1 Canadian

More information

UNDERSTANDING CANADIAN PUBLIC SECTOR FINANCIAL STATEMENTS

UNDERSTANDING CANADIAN PUBLIC SECTOR FINANCIAL STATEMENTS June 2014 UNDERSTANDING CANADIAN PUBLIC SECTOR FINANCIAL STATEMENTS www.bcauditor.com TABLE OF CONTENTS Who Will Find this Guide Helpful 3 What a Set of Public Sector Financial Statements Includes 5 The

More information

Forex Hedge Accounting Treatment

Forex Hedge Accounting Treatment OANDA FX Consulting Forex Hedge Accounting Treatment Foreign Exchange Management Creating Cost and Revenue Certainty OANDA Corporation Revision 1.5 - 2 - Table of Contents Introduction... 3 Why Hedge?...

More information

Financial Instruments Hedges. Section 3865. Financial Instruments (slide 1)

Financial Instruments Hedges. Section 3865. Financial Instruments (slide 1) Financial Instruments Hedges Section 3865 Financial Instruments (slide 1) This presentation provides an overview of Section 3865, Hedges, published by the Accounting Standards Board on January 27, 2005.

More information

The Effects of Changes in Foreign Exchange Rates

The Effects of Changes in Foreign Exchange Rates Compiled Accounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates This compiled Standard applies to annual reporting periods ending on or after 28 February 2007. Early application

More information

Chapter 6 Foreign Currency Translation. The objective of a currency is to provide a standard of value, a medium of

Chapter 6 Foreign Currency Translation. The objective of a currency is to provide a standard of value, a medium of Introduction and Background Chapter 6 Foreign Currency Translation Foreign Exchange Concepts and Definitions The objective of a currency is to provide a standard of value, a medium of exchange, and a unit

More information

Chapter 9, Problem 7 Closing inventory profits Before Tax After tax 40% tax

Chapter 9, Problem 7 Closing inventory profits Before Tax After tax 40% tax Chapter 9, Problem 7 Cost of 70% of Simon 900,000 Book value of Simon Common stock 550,000 Retained earnings Jan. 1 400,000 Net income to April 1 (¼ 200,000) 50,000 1,000,000 70% 700,000 Purchase discrepancy

More information

The Effects of Changes in Foreign Exchange Rates

The Effects of Changes in Foreign Exchange Rates Indian Accounting Standard (Ind AS) 21 The Effects of Changes in Foreign Exchange Rates (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority.

More information

Consolidated Financial Statements

Consolidated Financial Statements Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016

More information

A Guide to for Financial Instruments in the Public Sector

A Guide to for Financial Instruments in the Public Sector November 2011 www.bdo.ca Assurance and accounting A Guide to Accounting for Financial Instruments in the Public Sector In June 2011, the Public Sector Accounting Standards Board released Section PS3450,

More information

Consolidated Financial Statements

Consolidated Financial Statements Consolidated Financial Statements Reports 111 Management s responsibility for financial reporting 111 Report of Independent Registered Chartered Accountants 112 Management s report on internal control

More information

Note 8: Derivative Instruments

Note 8: Derivative Instruments Note 8: Derivative Instruments Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity prices

More information

(1.1) (7.3) $250m 6.05% US$ Guaranteed notes 2014 (164.5) Bank and other loans. (0.9) (1.2) Interest accrual

(1.1) (7.3) $250m 6.05% US$ Guaranteed notes 2014 (164.5) Bank and other loans. (0.9) (1.2) Interest accrual 17 Financial assets Available for sale financial assets include 111.1m (2013: 83.0m) UK government bonds. This investment forms part of the deficit-funding plan agreed with the trustee of one of the principal

More information

Indian Accounting Standard (Ind AS) 21 The Effects of Changes in Foreign Exchange Rates

Indian Accounting Standard (Ind AS) 21 The Effects of Changes in Foreign Exchange Rates Indian Accounting Standard (Ind AS) 21 The Effects of Changes in Foreign Exchange Rates Contents Paragraph OBJECTIVE 1-2 SCOPE 3-7 DEFINITIONS 8-16 Elaboration on the definitions 9-16 Functional currency

More information

Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

More information

INTERNATIONAL ROAD DYNAMICS INC.

INTERNATIONAL ROAD DYNAMICS INC. Consolidated Financial Statements of INTERNATIONAL ROAD DYNAMICS INC. MANAGEMENT S REPORT To the Shareholders of International Road Dynamics Inc. The information in this report, including the financial

More information

A guide to managing foreign exchange risk

A guide to managing foreign exchange risk A guide to managing foreign exchange risk CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies with more than 122,000 members of the financial, accounting and business profession

More information

Consolidated Balance Sheets March 31, 2001 and 2000

Consolidated Balance Sheets March 31, 2001 and 2000 Financial Statements SEIKAGAKU CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidated Balance Sheets March 31, 2001 and 2000 Assets Current assets: Cash and cash equivalents... Short-term investments (Note

More information

(Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions.

(Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions. Notes to the Consolidated Financial Statements (Amounts in millions of Canadian dollars except for per share amounts and where otherwise stated. All amounts stated in US dollars are in millions.) 1. Significant

More information

STATEMENT OF STANDARD ACCOUNTING PRACTICE FOREIGN CURRENCY TRANSLATION. (Issued April 1983)

STATEMENT OF STANDARD ACCOUNTING PRACTICE FOREIGN CURRENCY TRANSLATION. (Issued April 1983) Contents (Issued April 1983) Part 1 - Explanatory Note 1-32 Background 1 Objectives of translation 2 Procedures 3 The individual company stage 4-12 The consolidated financial statements stage 13-14 The

More information

SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements

SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements SUMITOMO DENSETSU CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements Report of Independent Public Accountants To the Board of Directors of Sumitomo Densetsu Co., Ltd. : We have audited the consolidated

More information

The Effects of Changes in Foreign Exchange Rates

The Effects of Changes in Foreign Exchange Rates Compiled AASB Standard AASB 121 The Effects of Changes in Foreign Exchange Rates This compiled Standard applies to annual reporting periods beginning on or after 1 July 2010 but before 1 January 2013.

More information

Notes to the Consolidated Financial Statements for the 92nd Fiscal Term. Notes to the Non-Consolidated Financial Statements for the 92nd Fiscal Term

Notes to the Consolidated Financial Statements for the 92nd Fiscal Term. Notes to the Non-Consolidated Financial Statements for the 92nd Fiscal Term To Those Shareholders with Voting Rights Notes to the Consolidated Financial Statements for the 92nd Fiscal Term Notes to the Non-Consolidated Financial Statements for the 92nd Fiscal Term The above documents

More information

Foreign Currency Translation

Foreign Currency Translation Statement of Accounting Standards Foreign Currency Translation Prepared by the Accounting Standards Board and the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation

More information

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31,

More information

The statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention.

The statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention. Note 1 to the financial information Basis of accounting ITE Group Plc is a UK listed company and together with its subsidiary operations is hereafter referred to as the Company. The Company is required

More information

Financial statements. Standardbred Canada (Incorporated under the Animal Pedigree Act) October 31, 2012

Financial statements. Standardbred Canada (Incorporated under the Animal Pedigree Act) October 31, 2012 Financial statements Standardbred Canada (Incorporated under the Animal Pedigree Act) (Incorporated under the Animal Pedigree Act) Contents Page Independent Auditors Report 1-2 Statement of operations

More information

York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT.

York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT. York Business Associates, L.L.C. (d/b/a TransAct Futures) and Subsidiary FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2014 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION December

More information

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated

More information

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10 - Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED JUNE 30,

More information

FINANCIAL STATEMENTS. Alberta Beverage Container Recycling Corporation. Contents

FINANCIAL STATEMENTS. Alberta Beverage Container Recycling Corporation. Contents 1 FINANCIAL STATEMENTS Alberta Beverage Container Recycling Corporation Contents 2 Independent Auditor s Report 3 Statement of Operations and Changes in Net Assets 4 Statement of Financial Position 5 Statement

More information

GUARDIAN CANADIAN BOND FUND

GUARDIAN CANADIAN BOND FUND GUARDIAN CANADIAN BOND FUND FINANCIAL STATEMENTS DECEMBER 31, 2010 March 11, 2011 PricewaterhouseCoopers LLP Chartered Accountants PO Box 82 Royal Trust Tower, Suite 3000 Toronto-Dominion Centre Toronto,

More information

GUYANA GOLDFIELDS INC.

GUYANA GOLDFIELDS INC. Interim Consolidated Financial Statements MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying unaudited interim consolidated financial statements of Guyana Goldfields Inc. (An exploration

More information

Antigonish Farmers Mutual Insurance Company. Consolidated financial statements. December 31, 2014

Antigonish Farmers Mutual Insurance Company. Consolidated financial statements. December 31, 2014 Consolidated financial statements Contents Page Management s statement of responsibility for financial reporting 1 Independent auditor s report 2 Consolidated statement of financial position 3 Consolidated

More information

Note 10: Derivative Instruments

Note 10: Derivative Instruments Note 10: Derivative Instruments Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity

More information

Significant Accounting Policies

Significant Accounting Policies Apart from the accounting policies presented within the corresponding notes to the financial statements, other significant accounting policies are set out below. These policies have been consistently applied

More information

AUDIOTECH HEALTHCARE CORPORATION

AUDIOTECH HEALTHCARE CORPORATION Consolidated Financial Statements of AUDIOTECH HEALTHCARE CORPORATION Year ended September 30, 2008 1 CHARTERED ACCOUNTANTS MacKay LLP 1100 1177 West Hastings Street Vancouver, BC V6E 4T5 Tel: (604) 687-4511

More information

IPSAS 4 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES ACKNOWLEDGMENT

IPSAS 4 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES ACKNOWLEDGMENT THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES ACKNOWLEDGMENT This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 21 (revised

More information

For Immediate Release MERCER INTERNATIONAL INC. REPORTS STRONG 2015 THIRD QUARTER RESULTS ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.

For Immediate Release MERCER INTERNATIONAL INC. REPORTS STRONG 2015 THIRD QUARTER RESULTS ANNOUNCES QUARTERLY CASH DIVIDEND OF $0. For Immediate Release MERCER INTERNATIONAL INC. REPORTS STRONG 2015 THIRD QUARTER RESULTS ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.115 NEW YORK, NY, October 29, 2015 - Mercer International Inc. (Nasdaq:

More information

Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

More information

Consolidated balance sheet

Consolidated balance sheet 83 Consolidated balance sheet December 31 Non-current assets Goodwill 14 675.1 978.4 Other intangible assets 14 317.4 303.8 Property, plant, and equipment 15 530.7 492.0 Investment in associates 16 2.5

More information

TAKASHIMAYA FINANCIAL STATEMENTS

TAKASHIMAYA FINANCIAL STATEMENTS TAKASHIMAYA FINANCIAL STATEMENTS Years ended February 29, and February 28, 2011 CONSOLIDATED BALANCE SHEETS Takashimaya Company, Limited and Consolidated Subsidiaries February 29, and February 28, 2011

More information

Financial Statements. Canadian Baptist Ministries December 31, 2014

Financial Statements. Canadian Baptist Ministries December 31, 2014 Financial Statements Canadian Baptist Ministries INDEPENDENT AUDITORS' REPORT To the Members of Canadian Baptist Ministries We have audited the accompanying financial statements of Canadian Baptist Ministries,

More information

ASPE AT A GLANCE Financial Statement Presentation1

ASPE AT A GLANCE Financial Statement Presentation1 ASPE AT A GLANCE Financial Statement Presentation1 December 2014 Financial Statement Presentation 1 OVERALL CONSIDERATIONS Effective Date Fiscal years beginning on or after January 1, 2011 2 FAIR PRESENTATION

More information

Internet Disclosure Accompanying the Notice of Convocation of. the 9th Annual General Meeting of Shareholders

Internet Disclosure Accompanying the Notice of Convocation of. the 9th Annual General Meeting of Shareholders To Our Shareholders, Internet Disclosure Accompanying the Notice of Convocation of the 9th Annual General Meeting of Shareholders June 8, 2016 SKY Perfect JSAT Holdings Inc. Table of Contents 1. Notes

More information

CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF INCOME Notes Sales 1) 5,429,574 5,169,545 Cost of Goods Sold 2) 3,041,622 2,824,771 Gross Profit 2,387,952 2,344,774 Selling Expenses 3) 1,437,010 1,381,132 General and Administrative

More information

MOUNTAIN EQUIPMENT CO-OPERATIVE

MOUNTAIN EQUIPMENT CO-OPERATIVE Consolidated Financial Statements of MOUNTAIN EQUIPMENT CO-OPERATIVE KPMG LLP PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax (604) 691-3031 Internet www.kpmg.ca

More information

The Wawanesa Life Insurance Company Segregated Funds. Interim Unaudited Financial Statements June 30, 2013

The Wawanesa Life Insurance Company Segregated Funds. Interim Unaudited Financial Statements June 30, 2013 The Wawanesa Life Insurance Company Segregated s Interim Unaudited Financial Statements Segregated s Statements of Net Assets As at (unaudited) and December 31, 2012 (audited) 2013 2012 Investments - at

More information

HOSOKAWA MICRON CORPORATION AND CONSOLIDATED SUBSIDIARIES

HOSOKAWA MICRON CORPORATION AND CONSOLIDATED SUBSIDIARIES AND CONSOLIDATED SUBSIDIARIES Consolidated Financial Statements For the Years Ended December 2016 Consolidated Balance Sheets Current assets: Millions of yen Thousands of U.S. dollars (Note 1) Assets 2016

More information

SIGNIFICANT GROUP ACCOUNTING POLICIES

SIGNIFICANT GROUP ACCOUNTING POLICIES SIGNIFICANT GROUP ACCOUNTING POLICIES Basis of consolidation Subsidiaries Subsidiaries are all entities over which the Group has the sole right to exercise control over the operations and govern the financial

More information

NOT-FOR-PROFIT ORGANIZATIONS: NEW DIRECTIONS

NOT-FOR-PROFIT ORGANIZATIONS: NEW DIRECTIONS DECEMBER 2010 WWW.BDO.CA ASSURANCE AND ACCOUNTING NOT-FOR-PROFIT ORGANIZATIONS: NEW DIRECTIONS In December 2010, the Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) each

More information

MANAGEMENT S DISCUSSION AND ANALYSIS U308 CORP. (A DEVELOPMENT STAGE COMPANY) THREE AND SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED)

MANAGEMENT S DISCUSSION AND ANALYSIS U308 CORP. (A DEVELOPMENT STAGE COMPANY) THREE AND SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED) MANAGEMENT S DISCUSSION AND ANALYSIS U308 CORP. THREE AND SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED) Prepared by: U3O8 Corp. 69 Yonge St. Suite 310 Toronto ON M5E 1K3 www.u3o8corp.com Table of Contents

More information

DTS CORPORATION and Consolidated Subsidiaries. Unaudited Quarterly Consolidated Financial Statements for the Three Months Ended June 30, 2008

DTS CORPORATION and Consolidated Subsidiaries. Unaudited Quarterly Consolidated Financial Statements for the Three Months Ended June 30, 2008 DTS CORPORATION and Consolidated Subsidiaries Unaudited Quarterly Consolidated Financial Statements for the Three Months Ended June 30, 2008 DTS CORPORATION and Consolidated Subsidiaries Quarterly Consolidated

More information

THE KINKI SHARYO CO., LTD. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT

THE KINKI SHARYO CO., LTD. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT THE KINKI SHARYO CO., LTD. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT Years ended March 31, 2009 and 2010 ASSETS THE KINKI SHARYO CO., LTD. AND CONSOLIDATED

More information

Khan Resources Inc. Interim Consolidated Balance Sheets (Expressed in United States dollars) (All dollar amounts are in thousands) (Unaudited)

Khan Resources Inc. Interim Consolidated Balance Sheets (Expressed in United States dollars) (All dollar amounts are in thousands) (Unaudited) Interim Consolidated Balance Sheets (All dollar amounts are in thousands) March 31, September 30, 2008 2007 Assets Current Cash $ 32,105 $ 33,859 Accounts receivable 52 47 Prepaid expenses and other assets

More information

J. Gaspar: Adapted from Jeff Madura, International Financial Management

J. Gaspar: Adapted from Jeff Madura, International Financial Management Chapter11 Managing Transaction Exposure J. Gaspar: Adapted from Jeff Madura, International Financial Management 11. 1 Transactions Exposure: To Manage or Not to Manage? Once the degree of transactions

More information

ICANN Foreign Exchange Risk Management Policy May 2009

ICANN Foreign Exchange Risk Management Policy May 2009 ICANN Foreign Exchange Risk Management Policy May 2009 Table of Contents Page Number 1. Purpose 2 2. Scope 2 3. Objectives and Strategy 2 4. Definitions 2 5. FAS 133 and FAS 52 Accounting 4 6. Authorized

More information

The Statement of Cash Flows

The Statement of Cash Flows CHAPTER The Statement of Cash Flows OBJECTIVES After careful study of this chapter, you will be able to: 1. Define operating, investing, and financing activities. 2. Know the categories of inflows and

More information

(c) Are insurance contracts monetary items? (paragraphs 13-14)

(c) Are insurance contracts monetary items? (paragraphs 13-14) IASB/FASB Meeting June 2010 week beginning 14 June IASB agenda reference FASB memo reference 2D 50D Project Topic Insurance Contracts Foreign currency cash flows Purpose of this paper 1. This paper deals

More information

Japan Vilene Company, Ltd. and Subsidiaries

Japan Vilene Company, Ltd. and Subsidiaries - 27 - Japan Vilene Company, Ltd. and Subsidiaries Notes to Consolidated Financial Statements Year Ended March 31, 2015 1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated

More information

Online Disclosures Relating to Notice of the 101st Annual Shareholders Meeting

Online Disclosures Relating to Notice of the 101st Annual Shareholders Meeting Online Disclosures Relating to Notice of the 101st Annual Shareholders Meeting Notes to Consolidated Financial Statements Notes to Non-Consolidated Financial Statements (From April 1, 2015 to March 31,

More information

ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES

ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES Institute of Chartered Accountants of New Zealand FINANCIAL REPORTING NO. 21 1997 FRS-21 Issued 12/97 Amended 04/98 ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES Issued by the

More information

JALUX Inc. and Consolidated Subsidiaries. Notes to Consolidated Financial Statements

JALUX Inc. and Consolidated Subsidiaries. Notes to Consolidated Financial Statements JALUX Inc. and Consolidated Subsidiaries Notes to Consolidated Financial Statements March 31, 2010 1. Summary of Significant Accounting Policies a. Basis of preparation JALUX Inc. (the Company ) and its

More information

FAS 133 Reporting and Foreign Currency Transactions

FAS 133 Reporting and Foreign Currency Transactions FAS 133 Reporting and Foreign Currency Transactions Participating Forwards An opinion on the Appropriate Accounting & Authority with Relevant Accounting Citations RISK LIMITED CORPORATION 2007 Risk Limited

More information

Interim Consolidated Financial Statements (Unaudited)

Interim Consolidated Financial Statements (Unaudited) Terasen Gas Inc. A subsidiary of Fortis Inc. Interim Consolidated Financial Statements (Unaudited) For the three and six months ended June 30, 2008 FOR MORE INFORMATION ABOUT TERASEN GAS VISIT OUR WEBSITE

More information

Consolidated financial statements 2013 1

Consolidated financial statements 2013 1 Consolidated financial statements 2013 1, Berlin (formerly: Zalando GmbH, Berlin) 1 Note in accordance with 328 Para. 2 German Commercial Code (HGB; Handelsgesetzbuch): The consolidated group financial

More information

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1.

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1. Volex Group plc Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement 1. Introduction The consolidated financial statements of Volex Group plc

More information

Items Disclosed via the Internet Concerning the Notice of. Convocation of the 117th Annual General Meeting of Shareholders

Items Disclosed via the Internet Concerning the Notice of. Convocation of the 117th Annual General Meeting of Shareholders To our shareholders: Items Disclosed via the Internet Concerning the Notice of Convocation of the 117th Annual General Meeting of Shareholders Notes to Consolidated Financial Statements Notes to Non-consolidated

More information

RANBAXY EGYPT COMPANY (L.L.C.) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 TOGETHER WITH AUDITOR S REPORT

RANBAXY EGYPT COMPANY (L.L.C.) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 TOGETHER WITH AUDITOR S REPORT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 TOGETHER WITH AUDITOR S REPORT Translation of Auditor s report AUDITOR S REPORT TO THE SHAREHOLDERS OF Report on the Financial Statements We have audited

More information

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary. 87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company

More information

Cathay Life Insurance Co., Ltd. Financial Statements As of December 31, 2006 and 2007 With Independent Auditors Report

Cathay Life Insurance Co., Ltd. Financial Statements As of December 31, 2006 and 2007 With Independent Auditors Report Financial Statements With Independent Auditors Report The reader is advised that these financial statements have been prepared originally in Chinese. These financial statements do not include additional

More information

Reporting Form ARF 320.9 Intra-Group Receivables and Payables Instruction Guide

Reporting Form ARF 320.9 Intra-Group Receivables and Payables Instruction Guide Reporting Form ARF 320.9 Intra-Group Receivables and Payables Instruction Guide General directions and notes Reporting entity The Intra-Group Receivables and Payables form is to be completed by all locally

More information

Notes to Consolidated Financial Statements Note 1: Basis of Presentation

Notes to Consolidated Financial Statements Note 1: Basis of Presentation NOTES TO CONSOLIDATED FINANCIAL STATEMENTS to Consolidated Financial Statements Note 1: Basis of Presentation Bank of Montreal ( the bank ) is a public company incorporated in Canada having its registered

More information

MATRIX IT LTD. AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS

MATRIX IT LTD. AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2013 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2013 NIS IN THOUSANDS INDEX Page Auditors' Reports 2-4 Consolidated Statements of Financial

More information

Interim Consolidated Balance Sheets 1. Interim Consolidated Income Statements 2. Interim Consolidated Statements of Comprehensive Income 3

Interim Consolidated Balance Sheets 1. Interim Consolidated Income Statements 2. Interim Consolidated Statements of Comprehensive Income 3 Interim Consolidated Financial Statements March 31, 2011, December 31, 2010, March 31, 2010 and January 1, 2010 Expressed in Thousands of US Dollars (except per share amounts and number of shares) Interim

More information

INGENICO GROUP Consolidated Financial Statements

INGENICO GROUP Consolidated Financial Statements INGENICO GROUP Consolidated Financial Statements December 31, 2014 Ingenico Consolidated Financial Statements December 31, 2014 I. CONSOLIDATED INCOME STATEMENTS For the years ended December 31, 2014 and

More information

The Kansai Electric Power Company, Incorporated and Subsidiaries

The Kansai Electric Power Company, Incorporated and Subsidiaries The Kansai Electric Power Company, Incorporated and Subsidiaries Consolidated Financial Statements for the Years Ended March 31, 2003 and 2002 and for the Six Months Ended September 30, 2003 and 2002 The

More information

SunGard Capital Corp. SunGard Capital Corp. II SunGard Data Systems Inc.

SunGard Capital Corp. SunGard Capital Corp. II SunGard Data Systems Inc. United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (Mark One) Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period

More information

International Financial Reporting Standards (IFRS) Implementation and Impacts. February 2, 2005

International Financial Reporting Standards (IFRS) Implementation and Impacts. February 2, 2005 International Financial Reporting Standards () Implementation and Impacts February 2, 2005 WHAT ARE? have been formulated by the International Accounting Standards Board (IASB) to: harmonize global accounting

More information

MCQ on International Finance

MCQ on International Finance MCQ on International Finance 1. If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with a) international monetary credits. b) dollars. c) yuan,

More information

Notes to Consolidated Financial Statements Notes to Non-consolidated Financial Statements

Notes to Consolidated Financial Statements Notes to Non-consolidated Financial Statements This document has been translated from the Japanese original for reference purposes only. In the event of discrepancy between this translated document and the Japanese original, the original shall prevail.

More information

Summary of Significant Differences between Japanese GAAP and U.S. GAAP

Summary of Significant Differences between Japanese GAAP and U.S. GAAP Summary of Significant Differences between Japanese GAAP and U.S. GAAP The consolidated financial statements of SMFG and its subsidiaries presented in this annual report conform with generally accepted

More information

Notes to the Interim Consolidated Financial Information (unaudited)

Notes to the Interim Consolidated Financial Information (unaudited) Note 1. The Company and basis of presentation ABB Ltd and its subsidiaries (collectively, the Company) together form a leading global company in power and automation technologies that enable utility and

More information

Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley

Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley Financial Publication for Fiscal Year Ended March 31, 2009 June 30, 2009 Citibank Japan, LTD ( CJL ) 2-3-14 Higashi-shinagawa, Shinagawa-ku, Tokyo Representative Director, President & CEO Darren Buckley

More information