Información de Interés

ABSTRACT: This study proposes an alternative way to translate financial statements.

The method:

1. avoid to generate the translation adjustments,
2. allows to calculate remeasurement effects in the original currency, that can be booked, and
3. after the determination of the remeasurement effects, the original financial state-ments can be translated to any other currency considering only the exchange rate between the register currency and the report currency at the balance sheet date.

The SFAS-52 received three dissents upon its approval. From that date to this day, the translation adjustments have been a dificult issue for their explanation and acceptance, for the people that prepare and the people that receive the financial statements. This is mainly important for the companies that operate in non enough stable economies.

The SFAS 52, in similar way IAS 21, mexican NIF B-15 and other standards of other countries, considers the remeasurement and the translation like two ways to prepare financial statetements in dollars when the books were registered in other currency. Translation is a particular case of the remeasurement procedure, like we are going to see later, that considers the exchange gains or loss not significants, therefore they can be booked directly in the stock holders equity.

But now, we are going to know a way to prepare financial statements in dollars, or in any other currency, based in the remeasurement procedure, avoiding to generate translation adjustments.