What is the currency report?

Report currency is a currency used by the company in its financial statements. Companies with international ties often do business in currencies outside the currency of their home country. At the same time, society usually has different currencies than what it uses as its reporting currency. A foreign subsidiary will usually report its financial statements in the currency of the country in which they are located; This is called subsidiary companies that show a currency. For example, if Dell has a subsidiary in Japan, the currency subsidiary will most likely be unimpressed. When companies consolidate, all financial statements of subsidiaries must become the same parent company. In an example, when Dell consolidates its financial statements from its Japanese subsidiary, the reporting currency will become a dollar of the United States (US).

The currency of a subsidiary that turns on the currency of parents' reporting must measure the parent company again or convert their financial statements into a maternity currency.This allows the financial statements to combine and combine quickly. It is impossible to add only to the US dollar, so converting the currency converts yen to the US dollar. After conversion, the currency of the subsidiary can be added to the parents' financial statement.

The translation process consists in multiplying accounts either by a historical exchange rate, a current exchange rate or an average exchange rate per year. In the Dell Example, Yen to Dell's Reporting Casre, the US dollar, would be exchange rates. The translation of its own capital uses a historical exchange rate from when an account was created.

The translation of assets and liabilities uses current Ange exchange at the time of translation. Revenue and expenditure are translated by means of an average exchange rate per year. After completing the translation process, similar accounts in the financial statements are combined. After the financial statements are published, there is a currency in which the numbers are displayed, a currency of reporting for the whole company.

6 This account is a profit or loss depending on how foreign currency was carried out during the year during the year. Since this profit or loss is reported in other complex income, it has no effect on net income per year, because profit or loss was only caused by translation.