Accounting for foreign operations: translation of foreign currency financial statements and disclosure / Shamsol Khairi Mohamad

Nowadays corporations have increased and the extent of international activities has also increased signifi­ cantly. Many companies at some stage become involved in transactions of an overseas nature. Domestic companies transact business with foreign entities in a variety of ways. In some instances, these activities constitute foreign currency transactions and may involve sales or purchases of goods and services, lending or borrowing of funds, and a variety of transactions. Domestic entities also have investment interests in foreign operations which take various forms. For example, a foreign operation may be a branch, division, subsidi­ ary, joint venture, or equity investment of a domestic
company.