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Reading 15: Multinational Operations
0:00 Introduction and Learning Outcome Statements
1:42 Distinguish among presentation (reporting) currency, functional currency, and local currency;
3:00 Describe foreign currency transaction exposure, including accounting for and disclosures about foreign currency transaction gains and losses;
13:10 Analyze how changes in exchange rates affect the translated sales of the subsidiary and parent company;
21:45 Compare the current rate method and the temporal method, evaluate how each affects the parent company’s balance sheet and income statement, and determine which method is appropriate in various scenarios;
24:10 Calculate the translation effects and evaluate the translation of a subsidiary’s balance sheet and income statement into the parent company’s presentation currency;
30:04 Analyze how the current rate method and the temporal method affect financial statements and ratios;
33:02 Analyze how alternative translation methods for subsidiaries operating in hyper-inflationary economies affect financial statements and ratios;
41:00 Describe how multinational operations affect a company’s effective tax rate;
41:57 Explain how changes in the components of sales affect the sustainability of sales growth;
46:38 Analyze how currency fluctuations potentially affect financial results, given a company’s countries of operation.