12

Accounting for Foreign Currency

Transactions and Hedging
Foreign Exchange Risk

Advanced Accounting, Fifth Edition

Slide
12-1
 Foreign Currency Transactions

Many U.S. companies engage in international activities

such as:
Exporting or importing goods,

Establishing a foreign branch, or

Holding an equity investment in a foreign company.

Slide
12-2
 Foreign Currency Transactions

Recording and reporting problems with foreign currency

transactions:
Transactions in a foreign currency must be translated
(expressed in dollars) before they can be aggregated
with domestic transactions.
Receivables or payables denominated in foreign
currencies are subject to gains and losses.
Companies use hedging strategies with derivatives to
minimize the impact of exchange rate changes.

Slide
12-3
Foreign Currency Transactions – Accounting Issue

• PSAK 10. Transaksi Mata uang asing yang

digunakan sebagai pedoman akuntansi transaksi
piutang dan utang usaha yang dinyatakan dalam
mata uang asing yang memerlukan pembayaran
atau penerimaan mata uang asing

• PSAK 55 Akuntansi untuk Instrumen Derivatif

dan Lindung Nilai digunakan sebagai pedoman
akuntansi untuk instrumen keuangan yang
dikategorikan sebagai derivatif untuk tujuan
lindung nilai.
Slide
12-4
 Exchange Rates—Means of Translation

Translation - process of expressing amounts stated in

a foreign currency in the currency of the reporting
entity by using an appropriate exchange rate.

Exchange rate - ratio between a unit of one currency

and another currency for which that unit can be
exchanged at a particular time.

Slide
12-5
 Exchange Rates—Means of Translation

Direct Exchange Rate

Units of domestic currency that can be converted into
one unit of foreign currency.
Direct rate = 1.517 ($1.517 U.S. for 1 British pound)

Indirect Exchange Rate

Units of foreign currency that can be converted into
one unit of domestic currency.
Indirect rate = 1.00/1.517 = .6592
($1 U.S. for .6592 British pound)

Slide
12-6
 Exchange Rates— Direct Exchange Rate

• Kurs Langsung atau The direct exchange

rate (DER) adalah banyaknya unit mata uang
lokal atau local currency units (LCUs) yang
diperlukan untuk memperoleh satu unit mata
uang asing atau foreign currency unit (FCU).

• Dari sudut pandang entitas Indonesia, kurs

langsung atau the direct exchange rate dapat
dipandang sebagai besarnya Rupiah untuk
memperoleh satu unit mata uang asing atau
one foreign currency unit.
Slide
12-7
 Exchange Rates— Direct Exchange Rate

• Kurs langsung atau The direct exchange rate ratio

dinyatakan sebagai berikut, dengan LCUs, yaitu rupiah
sebagai pembilang :
DER = Nilai setara Rupiah
1 unit mata uang asing
Contoh : Jika dengan Rp.13.600 dapat diperoleh 1
dollar AS, kurs langsung dari Rupiah terhadap
dolar adalah sebesar Rp.13.600
Rp.13.600
---------------- = Rp.13.600
$1
Slide
12-8
 Exchange Rates— Indirect Exchange Rate

• Kurs tidak langsung atau The indirect

exchange rate (IER) adalah kebalikan dari
kurs langsung atau the direct exchange rate.

• Dari sudut pandang entitas Indonesia, kurs

tidak langsung atau the indirect exchange
rate dapat ditunjukkan sebagai banyaknya unit
mata uang asing yang dapat diperoleh dengan 1
Rupiah.

Slide
12-9
 Exchange Rates— Indirect Exchange Rate

• Rasio untuk menghitung kurs tidak langsung

atau the indirect exchange rate adalah:
IER = 1 unit mata uang asing
Nilai setara rupiah
Contoh : dollar di atas adalah sebesar
1
------------- = $0,00007353
Rp.13.600

Slide
12-10
 Exchange Rates—Means of Translation

Spot Rate
Rate at which currencies can be exchanged today.

Forward or Future Rate

Rate at which currencies can be exchanged at some
future date.

Forward Exchange Contract

Contract to exchange currencies of different
countries on a stipulated future date, at a specified
rate (the forward rate).

Slide
12-11
 Exchange Rates— Spot Rate vs Current Rate

• PSAK 10 mengacu penggunaan kurs tunai

maupun kurs saat ini untuk mengukur operasi
luar negeri

• Kurs tunai (The spot rate) adalah kurs yang

digunakan dalam penyerahan segera suatu
mata uang

• Kurs saat ini (The current rate) didefinisikan

secara sederhana sebagai kurs tunai pada
tanggal neraca suatu entitas
Slide
12-12
 Exchange Rates— Forward Rate

• Kurs ketiga adalah kurs untuk pertukaran mata

uang di masa mendatang atau disebut kurs
kontrak berjangka (forward exchanges rate)

• Terdapat pasar pedagang kontrak pertukaran

berjangka khusus (forward exchange contracts)
yang aktif untuk perusahaan yang menerima atau
mengeluarkan mata uang utama internasional.

• Keuntungan dari pasar forward ini adalah setara

rupiah dari suatu penerimaan atau pengeluaran
masa depan unit uang asing dapat ditetapkan pada
saat kontrak tersebut dibuat
Slide
12-13
 Exchange Rates—Means of Translation
Floating Rates
Relationship between major currencies is determined
by supply and demand factors.

Increase risk to companies doing business with a

foreign company.

Example – Payable to be settled in 100,000 yen

Transaction Change Settlement
Date in Rate Date
Yen 100,000 100,000
Direct rate $ 0.00434 $ 0.00625
Payable $ 434.00 $ 625.00
Slide
12-14
 Measured Versus Denominated

Transactions are normally measured and recorded in

terms of the currency in which the reporting entity
prepares its financial statements.
Reporting Currency - usually the currency where the
company is located.
Transaction between a U.S. firm and a foreign company:
Companies negotiate whether settlement is to be made in
dollars or in the foreign currency.
If settled by foreign currency, U.S. firm measures the
receivable or payable in dollars, but the transaction is
denominated in the foreign currency.

Slide
12-15
LO 1 Measured versus denominated.
 Foreign Currency Transactions

Foreign Currency Transaction - requires payment or

receipt (settlement) in a foreign currency.
U.S. firm exposed to risk of unfavorable changes in
the exchange rate.

Direct exchange rate More dollars needed to

increasing, or foreign = acquire the foreign
currency unit strengthening. currency units.

Direct exchange rate Fewer dollars needed to

decreasing, or foreign = acquire the foreign
currency unit weakening. currency units.

Slide
12-16
LO 2 Foreign Currency Transactions.
 Foreign Currency Transactions

Importing or Exporting of Goods or Services

Translating Accounts Denominated in Foreign Currency

Transaction Balance Settlement

date sheet date date

Units of foreign currency x Current direct exchange rate

Increase or decrease is generally reported as a foreign currency

transaction gain or loss, sometimes referred to as an exchange gain
or loss, in determining net income for the current period.

Slide LO 3 Common transactions.

12-17 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Gambaran umum atas akuntansi yang diharuskan

untuk transaksi impor atau ekspor dalam mata uang
asing secara kredit adalah sebagai berikut :

1. Tanggal transaksi (Transaction date).

• Mencatat transaksi pembelian atau penjualan
pada nilai setara rupiah menggunakan kurs
langsung tunai pada tanggal tersebut.

Slide LO 3 Common transactions.

12-18 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

2. Tanggal Neraca (Balance sheet date)

• Menyesuaikan utang atau piutang menjadi nilai

setara rupiah pada akhir periode menggunakan
kurs langsung sekarang
• Mengakui keuntungan atau kerugian sebagai
akibat perubahan kurs antara tanggal
transaksi dengan tanggal neraca

Slide LO 3 Common transactions.

12-19 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

3. Tanggal Penyelesaian (Settlement date)

• Pertama-tama menyesuaikan utang atau piutang

untuk setiap perubahan mata uang asing antar
tanggal neraca (atau tanggal transaksi jika
transaksi tersebut terjadi setelah tanggal
neraca) dengan tanggal penyelesaian, mencatat
keuntungan atau kerugian yang terjadi.
• Kemudian mencatat penyelesaian utang atau
piutang dalam mata uang asing tersebut.
Slide LO 3 Common transactions.
12-20 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Slide LO 3 Common transactions.

12-21 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Slide LO 3 Common transactions.

12-22 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Slide LO 3 Common transactions.

12-23 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Slide LO 3 Common transactions.

12-24 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Slide LO 3 Common transactions.

12-25 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services

Exercise

Slide LO 3 Common transactions.

12-26 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services
Exercise 12-1:

Slide LO 3 Common transactions.

12-27 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services
Exercise 12-1:

Slide LO 3 Common transactions.

12-28 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services
Exercise 12-2:

Slide LO 3 Common transactions.

12-29 LO 4 Three stages of concern.
 Importing or Exporting of Goods or Services
Exercise 12-2:

Slide LO 3 Common transactions.

12-30 LO 4 Three stages of concern.
 Copyright

Copyright © 2011 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted
in Section 117 of the 1976 United States Copyright Act without
the express written permission of the copyright owner is
unlawful. Request for further information should be addressed
to the Permissions Department, John Wiley & Sons, Inc. The
purchaser may make back-up copies for his/her own use only
and not for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages, caused by the
use of these programs or from the use of the information
contained herein.

Slide
12-31