fx-translation-advisor

Name: fx-translation-advisor
Author: Raishin

17stars3forks

How to install fx-translation-advisor?

raishin/vanguard-frontier-agentic/fx-translation-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill fx-translation-advisor

Installs into the current project.

Summary

Multi-jurisdiction reference framework for foreign currency translation and remeasurement covering functional currency determination, ASC 830 / IAS 21 method selection, CTA in OCI, highly inflationary economy treatment, net investment hedge interactions, and multi-GAAP comparison

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SKILL.md

1	# FX Translation Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for foreign currency translation and remeasurement advisory — from functional currency determination through method selection, CTA routing, highly inflationary economy treatment, net investment hedge interactions, and jurisdictional FX control overlays.
6
7	---
8
9	## Part 1: Functional Currency Determination
10
11	### ASC 830-10-45 (US GAAP) and IAS 21.9–21.14 (IFRS)
12
13	The functional currency is the currency of the primary economic environment in which an entity operates. Determination uses a hierarchy of indicators:
14
15	Primary indicators (IAS 21.9 / ASC 830-10-45-2):
16
17	\| Indicator \| Question \|
18	\|---\|---\|
19	\| Sales price currency \| In which currency are sales prices denominated and settled? \|
20	\| Sales market currency \| Which currency dominates the competitive environment in which the entity sells? \|
21	\| Labor and material cost currency \| In which currency are the entity's principal costs (labor, materials) denominated and settled? \|
22
23	Secondary indicators (IAS 21.10 / ASC 830-10-45-4):
24
25	\| Indicator \| Question \|
26	\|---\|---\|
27	\| Financing currency \| In which currency are debt instruments denominated and settled? \|
28	\| Cash flow currency \| In which currency are receipts from operating activities usually retained? \|
29
30	Group entity indicators (IAS 21.11):
31	- Is the foreign operation an extension of the parent's activities (parent's currency indicators dominate)?
32	- Or does it operate with significant autonomy (local currency indicators dominate)?
33
34	Conflict resolution:
35	- When primary and secondary indicators conflict, judgment is required.
36	- IAS 21.12 provides that management uses judgment to determine the currency that most faithfully represents the economic effects of transactions, events, and conditions.
37	- ASC 830-10-45-6: when indicators conflict, management considers the totality of the facts.
38
39	Functional currency once determined:
40	- IAS 21.13: once determined, the functional currency does not change unless there is a change in the underlying transactions, events, and conditions.
41	- ASC 830-10-45-7: change in functional currency is treated prospectively from the date of the change.
42
43	---
44
45	## Part 2: Translation Method vs. Remeasurement Method
46
47	### The Two-Step Framework
48
49	Step 1 — Is the entity's record-keeping currency the same as its functional currency?
50	- No → Apply remeasurement (temporal method) to convert records into functional currency first.
51	- Yes → Proceed to Step 2.
52
53	Step 2 — Is the functional currency the same as the parent's presentation currency?
54	- No → Apply translation (current rate method) to convert functional currency statements into presentation currency.
55	- Yes → No translation required.
56
57	---
58
59	### Remeasurement (Temporal Method)
60
61	When it applies: foreign currency records ≠ functional currency (entity keeps books in a currency that is not its functional currency).
62
63	Rate assignment — ASC 830-10-45-17 / IAS 21.23–21.24:
64
65	\| Item Category \| Rate \|
66	\|---\|---\|
67	\| Monetary assets (cash, receivables, payables, debt) \| Closing rate (balance sheet date) \|
68	\| Non-monetary assets carried at historical cost (inventory at cost, PP&E, goodwill, intangibles) \| Historical rate (rate at date of transaction) \|
69	\| Non-monetary assets carried at fair value (investment properties at FV, equity securities at FV) \| Rate at date of fair value measurement \|
70	\| Income statement items related to non-monetary items (COGS, depreciation, amortization) \| Historical rate (matching the underlying asset) \|
71	\| Other income statement items (revenue, operating expenses not linked to non-monetary items) \| Average rate for the period (or transaction date rate if more appropriate) \|
72
73	P&L impact: remeasurement gains and losses go to P&L (not OCI).
74	- ASC 830-20-35-1: transaction gains and losses on monetary items → P&L.
75	- IAS 21.28: exchange differences on monetary items → P&L in the period.
76
77	---
78
79	### Translation (Current Rate Method)
80
81	When it applies: functional currency ≠ presentation currency (entity translates its functional-currency statements into the parent's presentation currency).
82
83	Rate assignment — ASC 830-30-45-3 / IAS 21.39–21.42:
84
85	\| Item Category \| Rate \|
86	\|---\|---\|
87	\| Assets (all) \| Closing rate (balance sheet date) \|
88	\| Liabilities (all) \| Closing rate (balance sheet date) \|
89	\| Income statement items (revenue, exp

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fx-translation-advisor

17stars3forks

View on GitHub

How to install fx-translation-advisor?

raishin/vanguard-frontier-agentic/fx-translation-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill fx-translation-advisor

Installs into the current project.

Summary

Files · 1

View on GitHub

SKILL.md

1	# FX Translation Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for foreign currency translation and remeasurement advisory — from functional currency determination through method selection, CTA routing, highly inflationary economy treatment, net investment hedge interactions, and jurisdictional FX control overlays.
6
7	---
8
9	## Part 1: Functional Currency Determination
10
11	### ASC 830-10-45 (US GAAP) and IAS 21.9–21.14 (IFRS)
12
13	The functional currency is the currency of the primary economic environment in which an entity operates. Determination uses a hierarchy of indicators:
14
15	Primary indicators (IAS 21.9 / ASC 830-10-45-2):
16
17	\| Indicator \| Question \|
18	\|---\|---\|
19	\| Sales price currency \| In which currency are sales prices denominated and settled? \|
20	\| Sales market currency \| Which currency dominates the competitive environment in which the entity sells? \|
21	\| Labor and material cost currency \| In which currency are the entity's principal costs (labor, materials) denominated and settled? \|
22
23	Secondary indicators (IAS 21.10 / ASC 830-10-45-4):
24
25	\| Indicator \| Question \|
26	\|---\|---\|
27	\| Financing currency \| In which currency are debt instruments denominated and settled? \|
28	\| Cash flow currency \| In which currency are receipts from operating activities usually retained? \|
29
30	Group entity indicators (IAS 21.11):
31	- Is the foreign operation an extension of the parent's activities (parent's currency indicators dominate)?
32	- Or does it operate with significant autonomy (local currency indicators dominate)?
33
34	Conflict resolution:
35	- When primary and secondary indicators conflict, judgment is required.
36	- IAS 21.12 provides that management uses judgment to determine the currency that most faithfully represents the economic effects of transactions, events, and conditions.
37	- ASC 830-10-45-6: when indicators conflict, management considers the totality of the facts.
38
39	Functional currency once determined:
40	- IAS 21.13: once determined, the functional currency does not change unless there is a change in the underlying transactions, events, and conditions.
41	- ASC 830-10-45-7: change in functional currency is treated prospectively from the date of the change.
42
43	---
44
45	## Part 2: Translation Method vs. Remeasurement Method
46
47	### The Two-Step Framework
48
49	Step 1 — Is the entity's record-keeping currency the same as its functional currency?
50	- No → Apply remeasurement (temporal method) to convert records into functional currency first.
51	- Yes → Proceed to Step 2.
52
53	Step 2 — Is the functional currency the same as the parent's presentation currency?
54	- No → Apply translation (current rate method) to convert functional currency statements into presentation currency.
55	- Yes → No translation required.
56
57	---
58
59	### Remeasurement (Temporal Method)
60
61	When it applies: foreign currency records ≠ functional currency (entity keeps books in a currency that is not its functional currency).
62
63	Rate assignment — ASC 830-10-45-17 / IAS 21.23–21.24:
64
65	\| Item Category \| Rate \|
66	\|---\|---\|
67	\| Monetary assets (cash, receivables, payables, debt) \| Closing rate (balance sheet date) \|
68	\| Non-monetary assets carried at historical cost (inventory at cost, PP&E, goodwill, intangibles) \| Historical rate (rate at date of transaction) \|
69	\| Non-monetary assets carried at fair value (investment properties at FV, equity securities at FV) \| Rate at date of fair value measurement \|
70	\| Income statement items related to non-monetary items (COGS, depreciation, amortization) \| Historical rate (matching the underlying asset) \|
71	\| Other income statement items (revenue, operating expenses not linked to non-monetary items) \| Average rate for the period (or transaction date rate if more appropriate) \|
72
73	P&L impact: remeasurement gains and losses go to P&L (not OCI).
74	- ASC 830-20-35-1: transaction gains and losses on monetary items → P&L.
75	- IAS 21.28: exchange differences on monetary items → P&L in the period.
76
77	---
78
79	### Translation (Current Rate Method)
80
81	When it applies: functional currency ≠ presentation currency (entity translates its functional-currency statements into the parent's presentation currency).
82
83	Rate assignment — ASC 830-30-45-3 / IAS 21.39–21.42:
84
85	\| Item Category \| Rate \|
86	\|---\|---\|
87	\| Assets (all) \| Closing rate (balance sheet date) \|
88	\| Liabilities (all) \| Closing rate (balance sheet date) \|
89	\| Income statement items (revenue, exp

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