CFA Level 2 | Multinational Operations | Part 1 | LOS A & B

Multinational Operations covers the detailed discussion about how foreign currency can affect multinational firms. Different methods use to remeasure or translate the financial statements of a foreign subsidiary to the parent’s presentation currency. The significant task is to be able to distinguish between and implement the two methods of accounting for foreign operations and to determine the impact of these two methods on reported earnings, cash flows, and financial ratios for both the subsidiary and the parent. How these two methods are affected in hyperinflationary economies is also a major part of this chapter.

0:16 - 2:17 Impact of foreign transactions
4:02 - 4:19 Problems that arises because of cross-border transactions
4:54 - 6:40 Explanation of hyperinflation with example
6:55 - 9:57 LC,FC,RC explained
10:25 - 20:09 Foreign transactions example along with basic concepts revision
26:50 - 29:54 Forward contract and spot transaction with example
30:17 - 36:40 What if Balance sheet date falls between transaction and settlement dates
51:12 - 54:50 Analysis required in foreign currency transaction

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Faculty- Aswini Bajaj
A qualified CA, CS, CFA, FRM, CAIA, CIPM, CFP, RV, CCRA, CIIB, CIRA, and AIM. He is also a guest lecturer (across 140+ colleges and 30+ IITs and IIMs), corporate trainer, and CEO of Leveraged Growth (Research and Consulting).

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[nirmalraikwar]

Is that lader balance can be noted as per historycal date on trail balance sheet to prove data balance over perticular party

[tarunkapoor]

I am a CA dropout student planning to do CFA can you please upload your latest updated CFA level 1 lectures