foreign currency translation

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Foreign currency translation

The process of restating foreign currency accounts of subsidiaries into the reporting currency of the parent company in order to prepare consolidated financial statements.

Foreign Currency Translation

When a parent-subsidiary relationship exists between two companies in different countries using different currencies, the act or practice of changing the financial statements of the subsidiary to conform to the accounting standards of the parent's country, as well as re-denominating the subsidiary's currency into the parent's currency. According to the Generally Accepted Accounting Principles in the United States, the translation of a foreign currency to U.S. dollars must be accurate as of the date on the financial statement. If there have been substantial changes to the exchange rate since that date, the consolidated financial statement must note this.

foreign currency translation

foreign currency translation

the process of denoting the assets and liabilities of a MULTINATIONAL ENTERPRISE'S foreign subsidiary's BALANCE SHEET and the revenues and expenses of the subsidiary's PROFIT-AND-LOSS ACCOUNT, which are expressed in terms of the subsidiary's local currency by translating them into the parent company's domestic currency. This is done in order to prepare CONSOLIDATED ACCOUNTS for the group.

There are two main currency translation methods:

  1. the closing rate, or net investment method, or all-current method, in which all foreign currency items are translated at the EXCHANGE RATE ruling at the date of the balance sheet. With the closing rate method any gains or losses on exchange arising from translation are taken direct to the group balance sheet an dealt with as changes in RESERVES so as not to affect reported PROFIT.
  2. temporal method or current/non-current method, in which fixed assets and long-term liabilities are translated at the exchange rate ruling at the date of their acquisition, and revenues and expenses at an average exchange rate for the year. With the temporal method any differences arising on translation are taken to the profit-and-loss account where they serve to affect recorded profit.
References in periodicals archive ?
Revenue excluding acquisitions and foreign currency translations (organic revenue) is a non-GAAP measure; the accompanying financial tables contain a reconciliation to consolidated revenue.
In CGTU051, MCII Announces Additional Shareholder Investment of $50 Million, Reports First Quarter Earnings, moved earlier today, we are advised by a representative of the company that in the tabular material, the line items Foreign Currency Translations Gain (Loss), Other Income (expense) and Income Taxes (benefit) should read:
Examples of forward-looking statements include, but are not limited to (a) projections of revenues, cost of raw materials, income or loss, earnings or loss per share, capital expenditures, growth prospects, dividends, the effect of currency translations, capital structure and other financial items, (b) statements of plans of and objectives of the Company or its management or Board of Directors, including the introduction of new products, or estimates or predictions of actions by customers, suppliers, competitors or regulating authorities, and (c) statements of future economic performance.
The restatement of the Statement of Cash Flows will include a reclassification of $110,141 cash flows from finance receivables under the heading "Cash Flows From Investing Activities" to the heading "Cash Flows From Operating Activities" and possible adjustment of certain amounts reflecting the effect of foreign currency translations on cash.
dollar, the potential negative effects on earnings of currency translations, the ability of MicroTel to expand its presence in these markets, trends in MicroTel's financial condition and results of operations, MicroTel's ability to distinguish itself from its current and future competitors, the continued demand for MicroTel's products, worldwide economic conditions, changes in governmental regulations and policies, the emergence of competitive products and services and unforeseen technical issues and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended Dec.
Other factors which could cause such results to differ materially from those described in the forward-looking statements include delays in developing, completing, or shipping new or enhanced products, the ability to assimilate acquisitions into MSC's operations, foreign currency translations, and other risks and uncertainties that are detailed in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission.
Other factors that could cause such results to differ materially from those described in the forward-looking statements include delays in developing, completing, or shipping new or enhanced products, the ability to assimilate acquisitions into MSC's operations, foreign currency translations, and other risks and uncertainties that are detailed in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission.
This press release contains forward-looking statements that involve uncertainties, including, but not limited to, risks and uncertainties related to foreign currency translations, the competitive environment and other risks.
Factors which could cause such results to differ materially from those described in the forward-looking statements include delays in developing, completing, or shipping new or enhanced products, fluctuation in quarterly results, foreign currency translations, and other risks and uncertainties that are detailed in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission.
The Company now expects cash operating profit(1), excluding the effects of currency translations and nonrecurring items, to total $2.
Sappi which is listed on the London, Frankfurt and New York stock exchanges, and has its primary listing on the Johannesburg Stock Exchange said that reporting in US Dollars will make it easier for the group's results to be compared to its peer group and eliminate distortions caused by currency translations.