Translation of foreign currencies

Reference no: EM1345466

All asset and liability accounts of foreign subsidiaries and affiliates are translated into Japanese yen at approximate year-end current exchange rates and all income and expense accounts are translated at exchange rates that approximate those rates prevailing at the time of the transactions. The resulting translation adjustments are accumulated as a component of accumulated other comprehensive income. Receivables and payables denominated in foreign currency are translated at appropriate year-end exchange rates and the resulting translation gains or losses are taken into income.

Explain the policies used in reflecting in the financial statements the impact of changes in foreign exchange rates.

Reference no: EM1345466

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