There are two broad categories of foreign currency issues that arise in financial reporting.They are:

Question

Quizplus · Accepted Answer

The two broad categories of foreign currency issues that arise in financial reporting are accounting for foreign currency transactions and translating the accounts of foreign subsidiaries. Accounting for foreign currency debt and offshore financing is a specific issue within the broader category of accounting for foreign currency transactions. Reporting purchase price parity and reporting foreign interest rate adjustments are not broad categories of foreign currency issues, but rather specific issues within broader categories. Accounting for foreign currencies using the forex buy rate and the forex sell rate is not a broad category of foreign currency issues, but rather a method for accounting for foreign currency transactions.

There Are Two Broad Categories of Foreign Currency Issues That