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 Hedging activity. 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
Also check out:
McDonalds 10K: Reviewing Foreign Currency and Hedge Accounting
• McDonalds 10K: Analyzi...
Consolidation Accounting: 5 Technical and Operational Considerations (ASC 810)
• Consolidation Accounti...
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