FRS Series: Effects of Changes in Foreign Exchange Rates and Consolidation of Foreign Subsidiaries and Associates

Description

This webinar is designed specifically to give Accountants and Finance Professionals a good grasp of the fundamentals of Reporting Foreign Currency Transactions in the Functional Currency. The Trainer will discuss and illustrate the issues related to the preparation and presentation of statement of profit & loss and other comprehensive income, statement of financial position and cash flow financial statements for groups with subsidiaries and associates.

You will get to work on practical examples and case studies, and learn to prepare the consolidated financial statements (balance sheet) and the consolidated statement of profit & loss and other comprehensive income (profit or loss account) effectively.

What you will learn

At the end of the webinar, you will:

  • Learn how to translate the financial statements of foreign operations
  • Learn how to prepare foreign currency statements
  • Learn how to arrive at and proof the exchange fluctuation reserve balance

Programme Outline

Session 1 : Effects of changes in foreign exchange rates
Essential concepts

  • Functional currency
  • Presentation currency

Session 2 : Exchange translation currency reserve (ETCR) account
Acquisition of foreign subsidiaries

  • Calculation of goodwill
  • Deriving the ETCR
  • Allocation of ETCR to owners of the company and non-controlling interest (NCI)
  • Proof of ETCR
  • Proof of NCI

Acquisition of foreign associates and joint ventures

  • Calculation of goodwill
  • Deriving the exchange translation difference balance (ETCR)
  • Proof of ETCR

Disposal of foreign subsidiary

  • Deriving the exchange translation difference balance (ETCR)
  • Recycling of ETCR on disposal
  • Proof of ETCR

Session 3 : Statement of cash flows (local subsidiaries)
Worksheet method
Cash flow effects of acquisition of local subsidiary
Cash flow effects of disposal of local subsidiary

  • Foreign currency transactions and operations
  • Reporting foreign currency transactions in the functional currency
  • Using the appropriate exchange rates at transaction date and year end translation
  • Treatment of unrealized exchange differences at group and company
  • Impairment consideration for foreign assets

This webinar qualifies for 7.0 CPE hours in Financial Reporting Standards and Pronouncements (Category 1).

Expert Speaker

Oh Ai Sim

Ai Sim is a qualified Accountant with over 20 years of audit related experience in a big four accounting firm. Her portfolio of clients included listed companies, multi-national companies and private entities, covering specialized industries in the technology sectors, property development and construction, retail and warehousing, manufacturing, trading and charitable organizations.

Ai Sim was involved in initial public offerings, mergers and acquisitions, due diligence and corporate restructuring.
She was also actively engaged in technical training during her audit career. She now conducts training regularly on FRS and audit related topics.

  • Dec 28
    Mon, 9:00 AM SGT - Mon, 5:00 PM SGT Online
    • $342.40 incl. GST (7%)
    • PD hours: 7

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One-Connection-One-Fee

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Recordings

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