{"id":1389,"date":"2010-12-11T05:32:23","date_gmt":"2010-12-11T03:32:23","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=1389"},"modified":"2012-08-16T09:18:12","modified_gmt":"2012-08-16T07:18:12","slug":"statement-of-comprehensive-income-template-%e2%80%93-currency-translation-differences","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/statement-of-comprehensive-income-template-%e2%80%93-currency-translation-differences\/","title":{"rendered":"Statement of Comprehensive Income Template \u2013 Currency translation differences"},"content":{"rendered":"<p><strong>Statement of Comprehensive Income Template<\/strong> includes a line called \u201cCurrency translation differences\u201d. Now, you may be asking what those currency translation differences are doing on the comprehensive income statement when they are already presented on the income statement. Note that such a classification and disclosure may differ depending on the GAAP; however, there are some similarities between GAAPs that include the requirement to disclose the comprehensive income statement separately in the annual report.<br \/>\n<!--more--><br \/>\nEssentially currency translation differences arise when the functional currency differs from the currency used in the transaction. Foreign currency transactions are translated into company\u2019s functional currency using the exchange rate prevailing at the dates of the transaction or valuation depending on the essence of the item. Gains and losses arising from translation of monetary assets and liabilities denominated in foreign currencies are recognized in income statement. While there\u2019s a separate disclosure requirement for those gains and losses recognized in the income statement, there are however translations that aren\u2019t disclosed in the income statement at all.<\/p>\n<p>Translation differences of non-monetary financial assets and liabilities are recognized in the income statement as part of the fair value gain or loss; however translation differences of non-monetary financial assets such as equity investments for an example are disclosed in the comprehensive income statement. As mentioned earlier, a part of Statement of Comprehensive Income Template is called other comprehensive income, which is essentially for unrealized gains and losses. As a result those currency translation differences are disclosed on the income statement when they are realized (e.g. assets are disposed etc).<\/p>\n<p>In the Statement of Comprehensive Income Template the line \u201cCurrency Translation differences\u201d is optional; however it\u2019s necessary to know the meaning and usage of it. These translation differences are often confused with all kind of currency translation differences, so that most companies tend to present all gains and losses arising from translation differences in comprehensive income statement.<\/p>\n<p><strong><span style=\"text-decoration: underline;\"><a title=\"Statement of Comprehensive Income template\" href=\"http:\/\/www.officetodo.com\/public\/statement-of-comprehensive-income-template\/\">Download template here<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Statement of Comprehensive Income Template includes a line called \u201cCurrency translation differences\u201d. Now, you may be asking what those currency translation differences are doing on the comprehensive income statement when they are already presented on the income statement. Note that such a classification and disclosure may differ depending on the GAAP; however, there are some [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,49],"tags":[],"class_list":["post-1389","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-4-income-statement"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/1389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=1389"}],"version-history":[{"count":6,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/1389\/revisions"}],"predecessor-version":[{"id":3295,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/1389\/revisions\/3295"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=1389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=1389"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=1389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}