Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 118

Example 7.23: Foreign Currency Transactions and Comprehensive Income GAAP generally requires recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. The functional currency of the Company's Australian subsidiaries is the Australian dollar. Translation gains of $605,430 and $616,738 for the years ended August 31, 20X2 and 20X1, respectively, are classified as an item of other comprehensive income in the stockholders' equity section of the balance sheet.