McDonalds 10K: Analyzing Foreign Currency and Hedge Accounting (ASC 830)

In this video, we're going to show you GAAP accounting concepts for Foreign Currency and Hedge accounting. Watch this Video Next ➡️ • Accounting for Foreign...
Watch the full Playlist on Accounting for Foreign Currency ➡️ • Accounting for Foreign...
Foreign Currency concepts in this video 👍
ASC 830 provides accounting and reporting requirements for determining the functional currency, converting foreign currency transactions and translating the financial statements into the reporting currency.
ASC 815 governs hedge accounting.
Definitions
1) Functional Currency 👉 the currency the entity transacts in and keeps its accounting records
2) Reporting Currency 👉 the currency the parent, consolidating and/or holding company prepares its financial statements in
3) Spot Rate 👉 the currency translation amount at a certain period of time
====================================
I post daily accounting and finance quizzes here: / @patrickbraycpa
====================================
#foreigncurrency #fuctionalcurrency #accounting #patrickbraycpa #currency #foreigncurrency #accounting #advancedaccounting #GAAP #currencytranslation #accountingforcurrency #financials #cpaexam #accountingeducation

[@LifeisBuutiful]

Excellent explanation !!