@Sherlock here is my cliff notes version of foreign currency:
When the local currency = functional currency…you are translating the currency. For assets and liabilities, use the current rate. For equity, use the historical rate (you may have layers if a multiyear problem). For revenue and expenses, use the weighted average rate. Gains and losses from translation are a component of OCI.
When the function currency = reporting currency…you are remeasuring the currency. For monetary assets and liabilities, use the current rate. For non-monetary assets and liabilities, use the historical rate. For expenses that relate to non-monetary assets and liabilities (think depreciation, cogs, amortization) use the associated historical rate as you did for the asset/liability. For all other expenses and revenues, use weighted average. All gains and losses from remeasurement are included in ordinary income/loss…NOT OCI.
REG: 75 DONE 🙂
AUD: 61, 71, 68, 92 DONE 🙂
BEC: 76 DONE 🙂
FAR: 72, 74, 79 DONE 🙂
Licensed Michigan CPA 🙂
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