Consideraţii privind rezervele din conversie debitoare

Abstract

In this paper the author refers to some aspects looking the conversion of the foreign societies financial statements. This operation is especially used to establish consolidated accounts by the mother-society that owns foreign branches. In accordance with IAS 21 “The effects of changes in foreign exchange rates” the method that is used is the closing rate method. In accordance with this method all assets and liabilities elements, monetary or non monetary, must be converted to the exchange rate from the closing date of the financial exercise and the expenses and the incomes to the exchange rate from the date when the transactions were made or at the medium exchange rate of the period. The capitals and the reserves of the society are converted to the historical rate which is the exchange rate that exists at the day of its entrance into the consolidation perimeter. The reserves conversion included into the capital and reserves is realized at the same exchange rate in which the results that are at the base of those reserves were converted. The incomes, the expenses and the result are converted at the medium exchange rate. Further on is presented a practical example to illustrate the conversion of financial statements (balance-sheet and profit and loss account) of a foreign branch “A” and also the way in which the debtor reserves of conversion are decomposed in. The conversion of the elements from the balance-sheet and the result account produce a difference that is accounted directly into the capital and reserves. If it is a creditor one it represents a latent gain from foreign exchange currency and if it is a debtor one signify a latent loss.