10-400-13 Lecture Notes - Lecture 7: Income Statement, Historical Cost, Financial Statement

• School: HEC Montréal
• Department: 10
• Course: 10-400-13
• Professor: Sebastien Bouthier

Document Summary

Excerpt of the financial statements of bic inc. for the year ended december 31, 2007. According to the information in note 1-10 of bic"s financial statements, we can conclude that: The corporation carries out transactions in foreign currencies. The impact of these conversions appear in the comprehensive income statement (before net income) under the heading of operating expenses, as presented in note 4 as (gain)/loss on operational foreign currency translation. For the year ended december 31, 2007, the amount of the gain/loss on operational foreign currency translation is (933). At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rate prevailing on the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated (they were initially translated at the rate of the transaction date). Non-monetary items that are measured at fair value are translated using the exchange rates prevailing at the date of the measurement.