Chapter 11: Analysis of Global Operations

In this section

• Foreign Currency Transactions
  Foreign Currency Transactions (CFA Level 1): Spot Rates, Functional Currency, and Initial Recognition, Monetary vs. Non-Monetary Items, and Realized vs. Unrealized Gains or Losses. Key definitions, formulas, and exam tips.
• Translation of Foreign Currency Financial Statements
  Translation of Foreign Currency Financial Statements (CFA Level 1): Current Rate Method, When to Use It, and How It Works. Key definitions, formulas, and exam tips.
• Exchange Rate Effects on Reported Performance
  Exchange Rate Effects on Reported Performance (CFA Level 1): Core Concepts of Exchange-Rate Impacts on Financial Statements and Transaction vs. Translation Exposure in a Nutshell. Key definitions, formulas, and exam tips.
• Multinational Disclosures and Considerations
  Multinational Disclosures and Considerations (CFA Level 1): Key Multinational Disclosures, Geographic Revenue Analysis, and Assets and Liabilities by Region. Key definitions, formulas, and exam tips.
• Functional vs. Presentation Currency
  Functional vs. Presentation Currency (CFA Level 1): Understanding the Concept, Functional Currency vs Presentation Currency, and Determining the Appropriate Functional Currency. Key definitions, formulas, and exam tips.
• Hedge Accounting for Foreign Currency Transactions
  Hedge Accounting for Foreign Currency Transactions (CFA Level 1): Objectives of Hedge Accounting, Key Accounting Standards: IFRS 9 vs. ASC 815, and Types of Hedges. Key definitions, formulas, and exam tips.
• Hyperinflationary Accounting and Effects on Consolidations
  Hyperinflationary Accounting and Effects on Consolidations (CFA Level 1): Understanding Hyperinflationary Environments, Accounting in Hyperinflationary Economies, and Why Behind Restatement. Key definitions, formulas, and exam tips.
• Transfer Pricing in Global Operations
  Transfer Pricing in Global Operations (CFA Level 1): Arm’s Length Principle and Regulatory Considerations, Common Transfer Pricing Methods, and How Transfer Pricing Affects Financial Statements. Key definitions, formulas, and exam tips.
• Interim Foreign Currency Translation Issues
  Interim Foreign Currency Translation Issues (CFA Level 1): Key Concepts in Interim Foreign Currency Translation, Applying Average and Period-End Rates, and Seasonality and Exchange Rate Volatility. Key definitions, formulas, and exam tips.