How does the treatment of translation gains and losses differ between the current and temporal translation methods under FAS No. 52   Translation Gains and Losses differ vs. Current and Temporal Trans

Translation Gains and Losses differ vs. Current and Temporal Translation Methods.

Differences exist in terms of treatment of translation gains and losses and current and temporal translation methods. On translation gains and losses, it is essential to note that enterprises that undertake their operations globally need to ensure they translate their transactions, including buying services or asset acquisition, into their functional currency. Fluctuations in foreign exchange expose the value of properties and liabilities to variations. The additions and losses, which emanate from this, are accumulated as a comprehensive income statement’s entry of a translated balance sheet. Under FAS No. 52, an entry should permit investors to distinguish between substantial daily operational gains and losses and those that result from the translation of foreign currency. Distinct rules apply for translating financial statement items, such as income statement items, assets and liabilities, and cash flow statements, among others. Due to the complexity that exists here, it becomes essential to refer to an accountant concerning the accounting rules that govern foreign currency translation.

On the other hand, due to the constant fluctuation of exchange rates, challenges emerge when it comes to accounting for foreign currency translations, leading to current and temporal translation methods. Firms might consider different rates for a specific date or period. The current translation method requires businesses to translate their financial statement items at the present rate of exchange, including possessions as well as liabilities. The volatility affiliated with the practice in exchange rates, the gains, and losses attributed to the translation technique is reported on the consolidated net income account’s reserve account. The temporal translation method facilitates adjusting the assets that generate income on the balance sheet as well as affiliated items in the income statement by employing past exchange rates from the last date a company evaluated the account’s fair market value or transaction dates.

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10