FIN 621 Chapter Notes - Chapter 14: Accounts Receivable, Canadian Dollar, Historical Cost
6 Dec 2014
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Cica handbook section 1650 recommendations on procedure and accounting policy regarding to foreign operations of canadian companies. Form of subsidiary division or branch of a canadian company or cooperative joint venture with a foreign company. Business activities that are made and recorded in a currency other then the domestic dollar. Integrated foreign operations financially or operationally interdependent with the. Canadian parent company exposure to exchange rate changes similar to the exposure. Exist has the transactions of the foreign cooperation been undertaken by a. Self sustaining foreign operations foreign operation that is financially and operationally independent of the canadian company. Two approaches to translation: current rate method and temporal approach. Exposure to exchange rate changes is limited to the canadian company"s investment in the foreign operations. Application of one of two alternative: current rate method. Current rate all items in the financial statement are translated in the current exchange rate with few exception o o.
