Question: Sailaway Boats is a new client of yours Sailaway makes

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 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 financial statements in Canadian dollars. Sailaway wants to understand the accounting implications for its foreign currency risk in the business.
Explain the foreign currency accounting issues to Sailaway Boats.

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  • CreatedJune 09, 2015
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