Sony Corporation, headquartered in Tokyo, Japan, is one of the largest multinational companies in the world. While
Sony Corporation, headquartered in Tokyo, Japan, is one of the largest multinational companies in the world. While Sony’s financial reporting currency is the Japanese yen, the company’s foreign subsidiaries keep books in a variety of different currencies including the British pound, Euro, Indian rupee, Mexican peso, and U.S. dollar. In addition, Sony engages in international transactions denominated in currencies other than the yen. As a result, Sony must translate foreign currency receivables and payables and also must translate each foreign subsidiary’s financial statements into Japanese yen to prepare consolidated financial statements. Sony is one of the foreign companies listed on the NYSE, and therefore files an annual report on Form 20-F with the U.S. SEC each year.
a. Access Sony Corporation’s Form 20-F for the fiscal year ended March 31, 2017, available on the SEC’s EDGAR website at https://www.sec.gov/Archives/edgar/data/313838/000119312517203939/d358485d20f.htm and refer to “Translation of foreign currencies” in the “Summary of significant accounting polices” on page F-15.
b. Explain in your own words the policies that Sony uses to reflect the impact of changes in foreign exchange rates in its consolidated financial statements.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...
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