Financial Accounting – Foreign Currency Transactions
Financial Accounting – Foreign Currency Transactions, The course gives a detailed overview on accounting for foreign currency transactions.
Course Description
The course gives a detailed overview on accounting for foreign currency transactions. It explains as to how an entity accounts for the transactions which are held in foreign currency. We look at the concepts of denominated money, exchange rate quotations, exchange rates, cash flow hedge, fair value hedge etc.
This training is in line with the IFRS standards. IFRS refers to the International Financial Reporting Standards, which are designed as a common global language for business to ensure that accounts are both understandable and comparable on a global basis with a set of uniformity in them. As the international shareholding and trade are growing, there’s a dire need of reporting standards which deal with organizations on a global level.
All the concepts are explained extensively by the use of various case studies for the purpose of deep and insightful understanding.
The training includes the following:
- Introduction
- Denominated currency
- Exchange rate Quotation
- Types of Exchange rates
- Forward contract
- Hedging with Forward contracts
- Type of Hedges
- Conclusion
Currency Trading is done in Foreign Exchange Market. Currency plays an important role in every part of the world as it is required to conduct foreign trade and businesses. Through Foreign Exchange Market there are many participants who buy, sell and exchange currencies i.e. trillions of dollars. Currency Trading takes place between different countries in order to conduct smooth foreign trade transactions. In this educba’s course on Currency Trading you will be learning about Forex and Currency Trading basics, how currencies are quoted, bought and sold. Nationals buy and sell currency, you will be also learning about direct-indirect quotes, bid-offer spread, and market makers. The course will also highlight about various types of currency trading contracts i.e. cash, TOM, spot, forwards, swaps and also about how the risk is managed and how the same is defused.
