Cr Account payable 750,000
Dec. 31, 2007 retranslation of the transaction at the reporting date （rate=7.2）资产负债表日的折算
Dr Account payable 30,000
Cr Foreign exchange gain 30,000 Nov. 10, 2008 settlement of the transaction （rate=7） Dr Account payable 20,000 Cr Foreign exchange gain 20,000 Dr Account payable 700,000 Cr Bank deposit 700,000 4.Other entries其他会计分录
·when buy foreign currency 买入外币
Dr bank deposit—foreign currency account （at spot rate） Foreign exchange loss（外币兑换损失） Cr bank deposit—RMB account
·when sell foreign currency 售出外币
Dr bank deposit—RMB account Foreign exchange loss
Cr bank deposit—foreign currency account （at spot rate）
Lecture example 3: The Good Health company is a Chinese sport suit manufacture company. Its foreign currency transactions are usually translated at the spot exchange rate, and the foreign exchange gain and loss are recognized in the profit and loss in the period in which they arise. The foreign currency balance on Dec 31, 20X6 was as the following table:
Account name Account receivable Account payable Bank deposit Balance US$100,000.00 US$50,000.00 US$200,000.00 USD/CNY=8.4 Closing Exchange rate Some business transactions happened in the January, 20X7. a） On Jan 8, the company sold the products on credit to a US supermarket and earned revenue of US$100,000. The exchange rate on that day is USD/CNY=8.3. The account should be collected in the later days.
b） On Jan 10, the company made short-term borrowing of foreign currency for US$20,000. The exchange rate on that day is USD/CNY=8.3.
c） On Jan 15, the company imported raw materials from India for US$50,000 and paid in foreign currency deposit. The exchange rate on that day is USD/CNY=8.3. d）On Jan 20, the company collected the account receivable of US$100,000 for the US supermarket transaction. The exchange rate on that day is USD/CNY=8.35. e） On Jan 30, the company repaid the short-term borrowing of US$20,000. The exchange rate on that day is USD/CNY=8.35. [答疑编号811090103]
Please produce the accounting entries for the foreign currency transactions. Jan 8 Dr Account receivable—US account 830,000
Cr Main operating revenue 830,000
Jan 10 Dr Bank deposit —US account 166,000
Cr Short-term borrowing —US account 166,000 Jan 15 Dr Raw materials 415,000
Cr Bank deposit —US account 415,000
Jan 20 Dr Account receivable—US account 5,000
Cr Foreign exchange gain —US account 5,000 Dr Bank deposit —US account 835,000
Cr Account receivable—US account 835,000 Jan 30 Dr Foreign exchange loss —US account 1,000 Cr Short-term borrowing —US account 1,000 Dr Short-term borrowing —US account 167,000
Cr Bank deposit —US account 167,000
5.conversion of foreign currency financial statements 外币报表的折算 ·All assets and liabilities exchange rate – translated at the prevailing rate at balance date.资产和负债按照报表日的汇率折算
·Equity except undistributed profit –translated at spot rate when it occurs.所有者权益除了未分配利润之外，其他项目都是采用发生时的即期汇率。
·Revenue and expense items: spot rate at the transaction date 利润表中的收入和费用项目采用交易日的即期汇率或者平均汇率折算。
第十讲 企业合并 Business combination
1. Business Combinations 企业合并
Definition: the bringing together of separate entities or businesses into one reporting entity. 我国会计准则：将两个或两个以上单独的企业合并形成一个报告主体的交易或事项。 combination n. combine v. 联合，结合 reporting entity
merger and acquisition
Acquisition n. 购买 acquire v.
e.g. acquire fixed assets acquisition of fixed assets购买固定资产 收购，并购
e.g. acquisition of the share capital 收购股份资本 2. Types of Business Combinations 企业合并的种类 按涉及的行业：
- horizontal integration 横向合并 （水平式合并） - vertical integration 纵向合并（垂直式合并） - conglomeration 混合合并（多种经营合并） 从法律形式上讲: - merger 吸收合并
- consolidation 新设合并
- acquisition of majority interest 控股合并
> majority interest 多数股东权益 minority interest 少数股东权益 从合并动机来看：
- 善意收购 friendly acquisition
- 恶意收购 hostile acquisition
3. consideration of business combination 企业合并的支付方式： 现金合并 cash-for-assets 现金置换资产
cash-for-shares （cash-for-stock） 现金置换股份 股票合并 shares-for-assets （stock-for-assets） 股份置换资产 share-for-share （stock-for-stock） 股份置换 Lecture illustration 1—Cash-for-share acquisition 现金合并
In July 2007, Company A acquired all of the issued shares of company B in a market
transaction for $1,000,000 cash. The acquisition has resulted in a business combination. Currently, A becomes the shareholder and the parent of B. [答疑编号811100101]
Lecture illustration 2—Share-for-share acquisition 股权合并
In July 2007, A Company acquired all of the issued shares of B company in exchange for shares of A with a fair value of $2,000,000.A becomes the shareholder of B and the shareholders of B become shareholders of A. [答疑编号811100102]
4. relationship from business combination 合并之后所产生的关系 Investor/ Investee Relationships 投资者和被投资者
Parent/subsidiary relationship 母公司和子公司
Reporting Requirement—prepare Consolidated Financial Statements
5. Control 控制
A business combination of entities always involves one entity acquiring control over another business entity。
The power to control is the power to govern the financial and operating policies （控制经营及财务方针）of an entity to gain benefits from its activities（从该企业的经营活动中获利）. Can be exercisable directly or indirectly through another subsidiary. 直接或间接实施 Lecture illustration 3—Direct and Indirect control
A company owns 100 % of the voting shares in B company and 35% of the voting shares （有投票表决权的股份） in C Ltd. B company also owns 25% of the voting shares in C company.
[答疑编号811100103]
会计英语教材
