Student Forums CMA Part 2 Section A: Financial Statement Analysis A.4. Special Issues Foreign currency translation adjustments

Foreign currency translation adjustments

  • Creator
    Topic
  • #142437
    ihf7
    Participant

    Hi.. hope you are well

    What is the offset account to OCI for the translation in case of gain / loss for example to G&A expense?

    Thanks

Viewing 1 replies (of 1 total)
  • Author
    Replies
  • #142438
    Lynn Roden
    HOCK international

    Hi ihf7,

    Accumulated OCI is, itself, the offset account to the net gain or loss that is created when financial statements are translated from a subsidiary’s functional currency to the reporting currency using the current rate method. In other words, the net gain or loss that arises in the translation is offset by a debit or credit to Accumulated OCI.

    Lynn

    • This reply was modified 1 year, 8 months ago by Lynn Roden.
Viewing 1 replies (of 1 total)
  • You must be logged in to reply to this topic.