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

Foreign currency translation adjustments

  • Creator
  • #142437

    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?


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  • Author
  • #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.


    • This reply was modified 1 year, 8 months ago by Lynn Roden.
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