Resumen fasb 52 usgaap

FASB 52-Summary of Statement-FOREIGN CURRENCY TRANSLATION

http://www.fasb.org/summary/stsum52.shtml

Foreign Currency Translation (Issued 12/81)

Summary

Application of this Statement willaffect financial reporting of most companies operating in foreign countries. The differing operating and economic characteristics of varied types of foreign operations will be distinguished inaccounting for them. Adjustments for currency exchange rate changes are excluded from net income for those fluctuations that do not impact cash flows and are included for those that do. The requirementsreflect these general conclusions:
The economic effects of an exchange rate change on an operation that is relatively self-contained and integrated within a foreign country relate to the net investmentin that operation. Translation adjustments that arise from consolidating that foreign operation do not impact cash flows and are not included in net income.
The economic effects of an exchange ratechange on a foreign operation that is an extension of the parent's domestic operations relate to individual assets and liabilities and impact the parent's cash flows directly. Accordingly, the exchangegains and losses in such an operation are included in net income.
Contracts, transactions, or balances that are, in fact, effective hedges of foreign exchange risk will be accounted for as hedgeswithout regard to their form.
More specifically, this Statement replaces FASB Statement No. 8, Accounting for the Translation of Foreign Currency Transactions and Foreign Currency Financial Statements,and revises the existing accounting and reporting requirements for translation of foreign currency transactions and foreign currency financial statements. It presents standards for foreign currencytranslation that are designed to (1) provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity and (2) reflect in...