Rekenkundige verantwoording van buitelandse bedrywighede

M.Com. (Economics)The aim of this study is to determine whether the different methods of translation are conceptually accounted for. The disclosure practices currently being used in South Africa were evaluated to determine to what extent financial statements comply with the relevant standard of accounting practice. The objective of translation used as basis for the problem of foreign currency translation is compatible with the concept of economic decision-making usefulness. The acceptance of an objective of translation is a prerequisite for a specific methcx1 of translation. The temporal method and the closing rate method are both, depending on the specific circumstances, conceptually accounted for. There are material differences between the approach suggested by Jean Miller and current international practice. All translation differences are, according to this approach, accounted for in the inccme statement. Miller's approach has certain advantages and should be supplied to the business sector for commentary. There are no material differences between the standards of the Accounting Practice Board, the Financial Accounting standards Board, the International Accounting standards Camzi.ttee and the Accounting standards Camzi.ttee when it comes to the translation of the financial statements of foreign operations. Against this backgrexmd, the financial statements of selected ccmpani.es were evaluated for ccmpliance wi th statement RE 112 and exposure draft 83. The evaluation indicated that the closing rate method 1 is being used by the majority of companies. Translation differences are directly accounted for against non-distributable reserves. The assumption is that the business sector would not support: Miller's approach, due to the fact that all translation differences are exempted for in the income statement