Currency Translation

Currency Translation

Introduction

Currency translation is the process to quote the amount of the money of one currency in terms of another currency. This process is performed by using the exchange rates of the currencies involved. On the balance sheet the currency translation appears as an equity account. There are a large number of banks that involve the foreign adjusted currency translation as the equity capital. It is necessary for the companies to ensure that they report on any earnings that they earn from the foreign subsidiaries in the process of currency translation. This paper will discuss the four methods of currency ...