Essay on Lost in Translation

662 Words 3 Pages
Lost in Translation Ever been to a place where you don’t understand the language of the people around you? A place where you’re native language and their native language doesn’t meet. There are a lot of reasons why not knowing how to speak the language of the place you are staying can be exhausting. One of the reasons is for practicality. When you can’t speak the language, you’ll feel really useless because basically, you can’t communicate what you want. I experienced that firsthand while I was in Japan. I was in a shop in Japan and was looking through their items. I saw a coat and I really like it so I checked the price. It cost a lot but I think it was on sale, so I approach a saleslady. But apparently, the lady cannot speak English …show more content…
The common mistake, as mentioned in the article, is to record this transaction as part of the currency translation that is included in OCI. Exhibit 3 in the article shows an example of the translation of a subsidiary operating in a foreign functional currency under the proper accounting, while Exhibit 4 shows an example of the common mistake. The second common mistake happens while preparing the consolidated statement of cash flows based on amounts reported in the consolidated statement of financial position. Accountants misstate the statement of cash flows by allocating changes in cash flows from the effects of foreign-currency rates among individual cash flows line items when rules permit us of the average rate in effect during the period if it reasonably approximates the timing of cash flows. Although the consolidated balance sheets have been prepared using the exchange rates in effect on each balance sheet dates, the cash flows however, should be translated in the presentation currency using the average rate in effect during the period. Accordingly, as mentioned in the article, the difference between exchange rates might be fairly small but the error is most likely obvious on the face of the company’s financial statements. The company’s statement of cash flows will either omit the line item used to account for the effects of foreign currencies on cash flows or changes in

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