TUGAS MATA KULIAH

AKUNTANSI KEUANGAN LANJUTAN II

PERTEMUAN KE V
FOREIGN CURRENCY FINANCIAL STATEMENTS–REMEASUREMENT

Disusun Oleh :

Tiaz Nurrahmah Hidayati

041911535015

FAKULTAS EKONOMI DAN BISNIS

PRODI S1 AKUNTANSI
UNIVERSITAS AIRLANGGA di BANYUWANGI
2022
1. Define the functional currency concept and briefly describe how a foreign
entity’s functional currency is determined. Why is this definition critical from a
financial reporting perspective?
Jawaban :
Mata uang fungsional perusahaan adalah mata uang lingkungan ekonomi utama di
mana perusahaan beroperasi. Ini biasanya mata uang yang menerima sebagian besar
pembayaran dari pelanggan dan di mana ia membayar sebagian besar kewajibannya.
Faktor lain yang dipertimbangkan dalam menentukan mata uang fungsional termasuk
apakah harga jualnya ditentukan terutama oleh persaingan lokal atau peraturan
pemerintah daerah, bukan perubahan nilai tukar jangka pendek atau pasar dunia.
Penentuan mata uang fungsional (mata uang lokal atau mata uang induk atau mata
uang lainnya) sangat penting dalam menentukan pendekatan apa untuk mengubah
laporan keuangan menjadi mata uang pelaporan akhir yang digunakan: kurs saat ini
atau metode temporal. Jika mata uang fungsional adalah mata uang lokal, metode tarif
saat ini digunakan. Jika itu adalah mata uang induk, metode temporal digunakan. Jika
itu adalah mata uang lain, kedua pendekatan mungkin perlu digunakan.

4. Describe what the current rate method is and under what circumstances it
should be used.
Jawaban :
Current rate method digunakan ketika mata uang lokal anak perusahaan asing
ditentukan sebagai mata uang fungsional anak perusahaan. Laporan keuangan anak
perusahaan harus dijabarkan menggunakan metode kurs kini ke dalam mata uang
entitas pelapor (biasanya mata uang induk).
5. Describe what the temporal method is and under what circumstances it should
be used.
Jawaban :
Temporal method digunakan ketika mata uang entitas anak asing ditentukan sebagai
mata uang entitas pelapor (biasanya mata uang induk). Laporan keuangan anak
perusahaan harus diukur kembali dengan menggunakan metode temporal ke dalam
mata uang entitas pelapor.
 11. Under the current rate method, all the expenses are translated using some form of
current-period exchange rate. Under the temporal method, some expenses such
as salaries and utilities are translated using current rates but others, such as cost
of goods sold and depreciation expense, use historical rates. Why are different
rates used between the two methods? After all, they are all expenses.
Jawaban :
 Metode temporal membutuhkan pengukuran ulang biaya anak perusahaan asing.
- Beban yang terkait dengan pos moneter diukur kembali dengan kurs rata-rata
tertimbang yang sesuai untuk periode tersebut. Jenis pengeluaran tersebut dibayar
tunai atau dicatat sebagai kewajiban yang pada akhirnya akan membutuhkan
pembayaran tunai.
- Yang terkait dengan pos nonmoneter diukur kembali dengan kurs historis. Beban
yang terkait dengan item nonmoneter adalah yang terkait dengan inventaris dan
aset pabrik.
 Berdasarkan current rate method, semua akun dijabarkan dengan kurs rata-rata
tertimbang.

EXERCISES

E14-8

1. A. $11,000 (Exchange loss of $15,000 less an exchange gain on the account payable
of $4,000 ($64,000 original payable – 60,000 year-end adjusted balance) = 11,000 loss)

2. B. 11,364 (Translated at historical rate: 25,000/2.2 = $11,364)

3. D. $216,667

4. A. 5.7 LCU to $1 (the rate in effect when the dividend was paid)

5. D. 1,000,000 and $1,600,000 (Long term receivables (1,500,000 LCU/1.5) = 1,000,000

andLong term debt (2,400,000 LCU/1.5) = 1,600,000)

6. C. $475,000 (All 3 accounts are translated at current rates)

7. C. 120% ((330-150)/150 = 120%)

PROBLEMS

P14-5

Par of Chicago acquired all the outstanding capital stock of Sar of London on 1/1/2016, for
$1,120,000.The exchange rate for British pounds was $1.40 and Sar’s stockholders’ equity
was 800,000 pounds, consisting of 500,000 pounds capital stock and 300,000 pounds retained
earnings. The functional currency of Sar is the US dollar. Exchange rates for British pounds
for 2016 are as follows:

Current rate 1/1/2016 $1.40(H)

Current rate 12/31/2016 1.50
( C) Average exchange rate for 2016 1.55
(A)Exchange rate for dividends 1.54

Sar’s cost of good sold consists of 200,000 pounds of inventory on hand at 1/1/2016, and
purchases of 600,000 pounds less 150,000 pounds inventory on hand at 12/31/16, that was
acquired at an exchangerate of $1.68.

All of Sar’s plant assets were on hand when Par acquired Sar, and Sar’s other expenses
were paid in cashor relate to accounts payable.

Sar’s adjusted trial balance at 12/31/2016, in British pounds is as follows:

Debits
Cash 50,000
Accounts receivable 200,000
Short-term notes receivable 50,000
Inventories 150,000
Land 300,000
Buildings-net 400,000
Equip-net 500,000
Cost of sales 650,000
Depreciation expense 200,000
Other expenses 400,000
Dividends 100,000
3,000,000 pounds
Credits
Accounts payable 180,000
Bonds payable-10% 500,000
Bonds interest payable 20,000
Capital stock 500,000
Retained earnings 300,000
Sales 1,500,000
3,000,000 pounds
Prepare a remeasurement worksheet to restate Sar’s adjusted trial balance at December 31,
2015, in USdollars.

Sar Company
 Remeasurement Worksheet at
December 31, 2016

British pounds Exchange rate US dollars

Cash 50,000 $1.50 C $75,000
Accounts receivable 200,000 1.50 C 300,000
Short-term notes 50,000 1.50 C 75,000
receivable
Inventories 150,000 1.68 H 252,000
Land 300,000 1.40 H 420,000
Buildings-net 400,000 1.40 H 560,000
Equip-net 500,000 1.40 H 700,000
Cost of sales 650,000 *H 958,000
Depreciation expense 200,000 1.40 H 280,000
Other expenses 400,000 1.55 A 620,000
Dividends 100,000 1.54 154,000
Exchange loss 101,000
on
remeasurement
3,000,000 pounds $4,495,000

Accounts payable 180,000 $1.50 C $270,000

Bonds payable-10% 500,000 1.50 C 750,000
Bonds interest payable 20,000 1.50 C 30,000
Capital stock 500,000 1.40 H 700,000
Retained earnings 300,000 1.40 M 420,000
Sales 1,500,000 1.55 A 2,325,000
3,000,000 pounds $4,495,000

*** Cost of sales = Beginning inventory (200,000 pounds x $1.40H) = purchases (600,000
pounds x

$1.55A) – ending inventory (150,000 pounds x 1.68) = $958,000