Fixed Asset

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Fixed Asset
What Does Fixed Asset Mean? A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time. Fixed assets are sometimes collectively referred to as "plant".

Investopedia explains Fixed Asset Buildings, real estate, equipment and furniture are good examples of fixed assets. Generally, intangible long-term assets such as trademarks and patents are not categorized as fixed assets but are more specifically referred to as "fixed intangible assets". Related Terms Accumulated Fund Amortization Asset Asset Ledger Balance Sheet Depreciation Fixed-Asset Turnover Ratio Intangible Asset Revaluation Reserve Tangible Asset More Related Terms Related Links

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Read more: http://www.investopedia.com/terms/f/fixedasset.asp#ixzz1dBzFg4k6

foreign currency translation
Definition
Conversion of the accounting figures stated in one currencyinto another currency for financial reporting requirements.According to the U.S. GAAP regulations, the balance sheetitems are converted at the exchange rate as on the balancesheet date, and income statement items are converted at theweightedaverage exchange rate for the that year. The gains and losses resulting from the conversion are presented in the owners' equity section as a separate item. Any materialchange in the exchange rate occurring during the periodbetween the financial statement date and the audit report date is disclosed in the following financial statement.

fixed asset
Definition
A long-term, tangible asset held for business use and not expected to be converted to cash in the current or upcomingfiscal year, such as manufacturing equipment, real estate, and furniture. also called plant.

Foreign Currency Translation for your Business
The translation of foreign currency transactions is a very important process for any company, especially for banks. Not only translation of foreign currency transactions, but that of financial statements should give results which have to be in general compatible with the effects of rate changes on a company’s cash flows and its equity. It should also make sure that the financial statements present a true and fair view of the results of the management decisions. During a year a company may enter into transactions which may be represented in some foreign currency. The outcome of each such transaction then has to be translated into the company’s local currency. This has to be done keeping in mind the exchange rate in operation on the date when the transaction took place. This is true even for non monetary assets such as equity investments, machines etc. They have to be translated and recorded in the company’s local currency. Monetary assets and liabilities which are shown in foreign currency in the balance sheet should be translated using the exchange rate at that date. Any business usually engages in foreign currency operations in two important ways. First the company may enter directly into business transactions which are represented in foreign currencies. So the final results of these transactions will then have to be translated to the currency in which the company reports its financial statements. Another way of operating in foreign currency is when the foreign operations of a company is done using a foreign office or firm which maintains all its financial statements and accounting records in a currency which is usually different from the former’s currency denomination. So here to, in order to prepare consolidated financial statements and reports for the management, it becomes important to translate the complete financial statements and recordings of the foreign firm into the currency form used by the investing company for its reporting purposes.

The consolidated statements of a company dealing in foreign currency should reflect the financial status and relationships as measured in the foreign currency financial statements before the translation work is undertaken. There are two main stages by which a company can adopt the procedures for accounting the foreign operations of its business. In the first stage the financial statements of the individual company has to be prepared and in the second stage the consolidated financial statements of the companies/firms have to be prepared. In order to have a true and fair depiction of the financial statements, exchange gains and losses on long term items should be reported as part of the profit and loss statement for the period.

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