Description

This is a hybrid session. You have the option to attend this live in-person or online via Zoom. Please select accordingly at registration.

An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency.

The objective of this workshop is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.

The principal issues that will be addressed in this workshop are which exchange rates to use and how to report the effects of changes in exchange rates in the financial statements. These issues will be tackled in the form of practical case studies which participants and the trainer will undertake together.

Programme Outline

1. What is the meaning of functional currency and how is it determined.

2. Accounting for foreign currency gains and losses in 3 different scenarios

• Accounting for exchange differences in the income statement for transactions and balances in foreign currencies at entity level
• Accounting for exchange differences arising when translating foreign operations for consolidation and equity accounting purposes
• Accounting for exchange differences arising in translating an entity’s results into a presentation currency i.e. The currency in which the financial statements are presented

3. Case study One

• Translation of a foreign subsidiary’s financial statements to facilitate consolidation and proof of the movements of the exchange fluctuation reserve
• Translation of a foreign associate’s financial statements to facilitate equity accounting and proof of the investment in associate balance

4. Case study Two

• Accounting for changes of a functional currency

5. Case study Three

• Re-measurement of the financial statements of an entity that did not keep the financial statements in the correct functional currency and proof of the exchange differences arising thereof.

6. Case study Four

• Accounting for exchange differences arising from long-term monetary items that represent the net investment in a foreign subsidiary

7. Case study Five

• Accounting for exchange differences arising from the net investment in a foreign subsidiary where the long-term monetary item is not in the functional currency of either the parent or the foreign operation

Participants are encouraged to bring along their calculators for the workshop.

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

What you will learn

At the end of the workshop, participants should know:

• How to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.
• Which exchange rates to use and how to report the effects of changes in exchange rates in the financial statements

Target Audience

• Accountants who wish to have a more detailed understanding of accounting for foreign exchange transactions
• Auditors who have to verify the appropriateness of the valuation and disclosure of assets in the financial statements.

Expert Speaker

Sardool Singh

Sardool is an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He has been lecturing for the past 20 years, and is a highly sought-after seminar leader in the areas of Financial Reporting Standards, Cash Flow Statements, Analysis of Financial Statements, Consolidation and other technical accounting topics.

Sardool brings a commercial perspective to the understanding of complex Accounting Standards and simplifies the requirements of these Standards to enable the participants to have a clear understanding of the topic.

Sardool is also the Chief Financial Officer of an investment company. Prior to his current appointment, he was the Group Financial Controller of a Singapore listed healthcare company. During his ten years in the healthcare industry, he was responsible for the entire Group financial functions and the IPOs of two subsidiaries on SESDAQ. He had also gained his working experience with KPMG Peat Marwick and a Japanese merchant bank.