Sailaway Boats is a new client of yours Sailaway makes custom boats for specific orders It will have to follow Canadian GAAP but is unsure if ASPE or IFRS will be required The manufacturing facility is in Germany but most of the clients are in the United States and Canada Sailaway bills for orders ...

The foreign currency accounting issues to Sailaway Boats are as follows It will be necessary to determine if they are following ASPE or IFRS As they a ...

Sailaway Boats is a new client of yours. Sailaway makes custom boats for specific orders. It will

Question:

Sailaway Boats is a new client of yours. Sailaway makes custom boats for specific orders. It will have to follow Canadian but is unsure if ASPE or IFRS will be required. The manufacturing facility is in Germany but most of the clients are in the United States and Canada. Sailaway bills for orders in U.S. dollars and takes advantage of forward contracts to hedge against foreign exchange fluctuations. Sailaway was recently bought out by a Canadian owner who wants to see in Canadian dollars. Sailaway wants to understand the accounting implications for its foreign currency risk in the business.
Required
Explain the foreign currency accounting issues to Sailaway Boats.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...