Foreign Currency Accounting: Transactions, Remeasurement & Translation (IAS 21 / ASC 830)
Functional currency, transactions at spot, realised and unrealised exchange differences, monetary vs non-monetary items, translating a subsidiary, the CTA roll-forward and average vs actual rates: 8 labs on one optics group.
The first lesson is free — no account needed.
About this course
A foreign currency accounting course that follows one fictional optics group with a Dutch subsidiary through IAS 21 and ASC 830 in a spreadsheet, for accounting students, auditors and group reporting teams. You weigh eight indicators to conclude on the functional currency, record purchases and sales in euros, pounds, yen and francs at the spot rate, settle invoices and book realised exchange gains and losses with the right sign, retranslate open monetary items at the closing rate, keep non-monetary items at the historical rate and test euro inventory for a write-down, translate the subsidiary's income statement and balance sheet at closing, average and historical rates, roll the translation reserve (CTA) forward in a waterfall chart and test when one average rate is good enough. Illustrative rates, an educational summary of the standards, not accounting advice. The first lab is free.
Lessons
- Functional vs Presentation Currency: Weighing the IndicatorsFree
- Recording Foreign-Currency Purchases and Sales at the Spot Rate Pro
- Settlement: Realised Exchange Gains and Losses Pro
- Year-End Retranslation of Monetary Items: Unrealised Gains and Losses Pro
- Non-Monetary Items at the Historical Rate (and the NRV Trap) Pro
- Translating a Foreign Subsidiary: Closing, Average and Historical Rates Pro
- The Translation Reserve (CTA): Where It Comes From and How It Rolls Forward Pro
- Average Rate vs Actual Rates: When Is the Shortcut Good Enough? Pro