Waching daily Oct 5 2017

So now let's have a look at foreign assets and liabilities. And what I'm

first of all gonna do is split them into something that's nothing to do with

money so "non-monetary assets or liabilities"

and monetary ones things that are based on money, "monetary assets and liabilities",

such as loans, could be debtors, could be creditors, anything that's based on money.

Non-monetary assets of course could be things like non-current assets PPE etc

Now with non-monetary assets generally if we keep them at cost minus

depreciation, if we follow that rule, then all we do is when we buy it, we translate

it at the historic rate okay. Now if it's a monetary asset such as loans, well

loans you're going to have to pay interest on and you're gonna have to pay

back the capital, are you. Okay so the capital amount what we do is we re-translate

that at the year-end rate but the interest has been happening all over the

year so we re-translate that at the average rate okay. Now as we're

translating at the year-end rate here what we will get each year is a

difference, you know, one year you divide by 4 next year you divide by 5 we are

gonna get a difference. That difference simply goes to the income statement okay.

Now on to the non current assets back here again. What we may have remember is

a revaluation as well. If properties are re-valued and remember these are going

to be foreign properties then what we'll have to do is translate at the date of

revaluation.

Okay that's pretty much it really so I don't want to go on too much more about

it just remember it's split in between non monetary monetary ones is the

monetary ones because after all this is foreign exchange we are talking about,

it's the monetary ones that we do translate so the monetary ones do get

translated and we translate them if it's in a balance sheet item we translate it

in the year-end if it's an income state item we translate into the average rate.

They're generally balance sheet items and because you're translating them

every year then you're going to get a different figure every year and that

difference goes to the income statement. Non-monetary ones you generally don't

translate, you translate it first of all at a historic rate okay when you first

buy it and that's it you don't need to do anything else about it. But sometimes if

you follow the revaluation policy, think you have to revalue each year and

obviously it's a foreign asset so we have to use the exchange rate at the date of

revaluation all right. Yeah as I said I want to go on to much more about it

because I think it's better if we actually do some questions.

For more infomation >> ACCA F7 Online course: Foreign Assets & Liabilities (F7 Forex explained) Video 1 - Duration: 3:05.

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நடிகர் பிரசாந்த் –ஆல் தல அஜித்திற்கு ஏற்பட்ட அசிங்கம் VIRAL VIDEO | Kollywood Cinema News|Tamil News - Duration: 2:06.

For more infomation >> நடிகர் பிரசாந்த் –ஆல் தல அஜித்திற்கு ஏற்பட்ட அசிங்கம் VIRAL VIDEO | Kollywood Cinema News|Tamil News - Duration: 2:06.

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ACCA F7 Tuition: Foreign Assets & Liabilities Video 2 - Duration: 7:45.

On currency transactions then. First of all couple of terms for you to get to

know. Functional currency - what is the functional currency, what currency is it

that you functioning, okay, so it will be the currency of your primary economic

environment. So if you do most of your work in the UK your currency is sterling

all right, so, that's the overall thing it's the currency that influences your

selling price, your labor, your materials, that sort of thing and it's the currency

that you generate your cash in and it's the currency then you generally

spend your cash in okay. So it's kind of all of those things in your way because

some of them might be dollars some of them are be sterling some of the euros

and you make a judgment as to which one's your functional currenc, in which

currencies you are functioning, okay. Moving on then to presentation currency.

Presentation currency literally your functional currency might be euros but

you might present your currency in dollars literally the currency is

presented in and even I think that's a bit weird. Why would you do that and

generally of course you don't. If your functional currencies in euros then your

presentation currency is genuinely in euros. What it often happens though is

this might be a sub and the parent company is a USA company and so

therefore the group accounts will definitely be in dollars and your

functional currency for the Sub is in Euro, so you have to translate that Sub. So

that's a couple of terms. Now, how do we deal with this then. So

this is all to do with an individual company, nothing to do with a group

situation that I said, this is an individual company and you might buy

or sell something okay abroad, a foreign item. Well obviously you

will translate that at what we call the spot rate or the rate at that time, the

historic rate. Now you buy it on credit and so therefore by the time you come to

pay or receive, the rate, the spot rates, the historic rate will have

changed okay and the difference between those two goes to the income statement.

Now what also might happen is that you buy or sell and use the spot rate but

then by the time the year end comes, it's still owed, so you still owe or you are still

owed at the year-end and so what you do is you re-translates your monetary

figures to the year end rate, now. I know what you thinking, the hang on Richard, I'm

completely lost, that's fine! I'm gonna do some numbers,

alright. So here's this example then. We're a US company and we buy goods for

150,000 Korona and it's 1 dollar to 10 Koronas.

Okay so let's use this up here. Let me get rid of all of that bit there for now.

All right so we buy and sell out at this figure here so I'll do the figures like

this. So we buy and sell in dollars, the rate was 10 it is a 150,000

so 150,000 divided by 10 is 15,000 isn't it, okay,

so that would be 15,000 and what we would do. We would debit

purchases 15,000 credit payables 15,000. So far so good.

However when we come to pay it, the rate has changed. When we go to pay off the

rate is now we pay for goods at 12 so the rate would be the 150,000

divided by 12 which is

12,500. So we only have to pay 12,500 that's good news.

So what I'll do then I'll get rid of my payable of 15,000 I'll credit my cash

though with only 12,500 so therefore the other

credit that's left over it's good news to me and so I credit my income

statement. So can you see that I bought and sold it and I thought it was going

to cost me 15,000 I translated the spot rate. Then when I came to pay it, it had moved

to 12,500 because this was a payment it was good and the difference I put to the

income statement there okay. Now let's do another example okay. So in this example

same thing. There is 200,000 so I will debit purchases,

I will credit my payables with 200,000 divided by 10 = 20,000

okay. But this time it's unpaid at the year-end. So what I'd do at the year-end,

I re translate any monetary assets and liabilities. What's my monetary liability

it's the payable to a monetary liability with foreign loan, foreign debtor, foreign

creditor or whatever okay. So I need to re translate that 20,000.

This time at the rate of 9 so 20,000 divided by 9, my payable

should be 22,222.

My payable should be 22,222 okay and so therefore I need to increase

my payable by 222 to get from 20 to 22,222

Alright so that's all I've done I've re translated in the year end. Where does

the difference go am I pleased that my payables got bigger? No I'm not, I'm

annoyed, the difference goes to the income statement alright. So there you can see

then what I'm trying to do here if I can just recap all of this

and it might therefore then make a little bit more sense to us. So off I go then. I

buy something, I translate it, debit purchases, credit creditors or debit

debtors, credit sales at the spot rates. Then when I come to pay the money, I will

have to pay a different rate so where does the difference go? The income

statement or it could be, I buy something and I translate it at the spot rate but

it's still owed at the year-end. And all I do is re translate any monetary,

if it's still unpaid, there will still be a payable or a receipt, a receivable and

so I have to re translate that monetary asset or that monetary

liability at the year-end rate. So again I'm using a different rate. Where does

the difference go? To the income statement again all right. So difference between buying,

selling and paying, difference to the income statement, difference between

buying and selling at the year end, difference to the income statement.

For more infomation >> ACCA F7 Tuition: Foreign Assets & Liabilities Video 2 - Duration: 7:45.

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ACCA F7 exam: Foreign Assets & Liabilities (P2 June 14 2d) Video 6 - Duration: 3:02.

So this question is about when you have a foreign loan, all right? Now the

foreign loan is basically a foreign monetary asset. When you've got a

foreign monetary asset, what you have to do is you have to translate it, OK?

When it's a monetary asset. Non-monetary ones you don't, you translate it at the

start but you don't translate it after that but foreign monetary assets

we do and that's what a foreign loan is. Okay so let's have a look at this loan

then. It's a loan of 5,000,000 dinars so I'm gonna do it in dinars first.

5,000,000 dinars, interest rate is 8% so 8% of 5,000 would be 400.

The interest is paid at the end of each year

so paid at the end 400 and that will give a closing of 5,000.

So it's a very simple loan , it says the loan will be repaid after 2 years, the interest rate

is the current market rate so we know that the 400 is the effective rate

there's no need to adjust the opening or anything. Nice and straightforward.

So what we're gonna do now is really just translate those figures really.

So the opening, we'd use the opening balance of 5, wouldn't we, so we divide it by 5 and

that would give me 1,000 in our accounts. The interest then that would go to the

income statement as a payment. Well that's an interest happened all the way

during the year so use the average rate there 5.6 So 400 divided by 5.6 is 71.43 going to my

income statement as interest paid. Then I'll pay the interest at the end of

the year so I have to divide that by 6 that was 67 and then finally the

year-end, I have to retranslate my monetary balance so again year end rate at 6

which is 833. Now obviously that overall won't all add across, because this

exchange difference is going on. So you have to work out what the foreign

exchange difference is here so the foreign exchange difference caused by

all of this 1,000 + 71.43 - 67 compare it to the

833 and you should get a difference of (I have to work it out myself now cause I

forgot it) so what do we got we've got 1,000 + 71.43 - 67 - 833

a difference of 171.43

okay and that foreign is our foreign exchange difference that we will have to

put in our income statement. Alright so not a foreign sub this one, this is

just a foreign monetary assets in our own accounts. Well actually it's not a

monetary asset is it in this case it's a foreign monetary liability but the same

thing applies.

For more infomation >> ACCA F7 exam: Foreign Assets & Liabilities (P2 June 14 2d) Video 6 - Duration: 3:02.

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30 Day Video Challenge: 04. Strategy | Budgeting - Duration: 2:44.

Hey, Nina again. So time and money budgeting I'm gonna assume for now that

we're not really spending any money on this but we are spending time on this

right so the one thing you might spend money on if it all is a little tripod

and is a microphone we'll talk about that in the shooting part of this series

but your time is valuable yeah I know you know that but we tend to forget it

when we sign on to a new task so with video marketing what I want you to be

aware of is what the times are so for instance a video like this it's gonna be

you know in 90 seconds maybe two minutes to shoot that it takes me and I've been

doing this for a while now it takes me about 20 minutes to shoot it but it also

took me the time to get dressed make sure you know I'm groomed and I'm

putting on some makeup so all of these things kind of come with the package of

time spent on this what you might have noticed is that I am wearing the same

outfit so I'm doing anything that is in the strategy section of these this

series of videos I'm shooting that all at once to make my life easier and then

so these four videos are going to take me about an hour to shoot because I do

reshoot the takes until I have a take that I'm pretty happy with because I

hate having to go through all the different takes and pull out all the

best sentences that because that then costs me a lot of time in editing so to

me it is faster to record something several times over but then have it more

or less clean take that I can work with and post-production or when I'm editing

editing if you are novice allow a lot of time for it it just takes a moment to

get used to it and I will talk about in a later part about you know what what

your steps are in editing to keep yourself sane I would say for a video

like this I will allow about 45 minutes to edit and if I'm doing them bulk so

for something like this for these five videos I'm gonna plan for five hours

total from thinking about what I want to say which I'm gonna do not sitting at my

desk but walking around and then should editing it but if I did them as one-offs

I would not it wouldn't be an hour I would say like it would be more like an

hour and a half or two so it's really worth it to bulk it up

so again if your time is super valuable and you do not have the time to spend on

editing I would say get yourself some help from either from up work or an

intern or you know a professional editor and make an hourly deal with them

Ciao!