學門類別
最新個案
- Leadership Imperatives in an AI World
- Vodafone Idea Merger - Unpacking IS Integration Strategies
- V21 Landmarks Pvt. Ltd: Scaling Newer Heights in Real Estate Entrepreneurship
- Snapchat’s Dilemma: Growth or Financial Sustainability
- Did I Just Cross the Line and Harass a Colleague?
- Predicting the Future Impacts of AI: McLuhan’s Tetrad Framework
- Porsche Drive (A) and (B): Student Spreadsheet
- Porsche Drive (B): Vehicle Subscription Strategy
- TNT Assignment: Financial Ratio Code Cracker
- Winsol: An Opportunity For Solar Expansion
Encana Corporation: Accounting for Foreign Currency
內容大綱
In 2012, Encana is reassessing its choice for functional currency and presentation currency. Historically, Encana has used Canadian dollars for its functional currency and US dollars for its presentation currency, but changes in Encana’s operations over the past several years have caused the company to revisit its choices. For functional currency, Encana must determine whether Canada continues to represent its primary economic environment. Further, Encana must consider whether its reasons for using U.S. dollars as presentation currency remain valid. To make its decisions, Encana must apply the guidance in IAS 21, “The Effects of Changes in Foreign Exchange Rates.” Finally, Encana must determine the impact of its choices on the financial statements.
學習目標
The Encana case is designed for use in an intermediate or advanced course on financial accounting at either an undergraduate or graduate level to illustrate the choices surrounding accounting for foreign currency. As secondary learning objectives, students are exposed to segmented reporting and the challenges associated with operating in the oil and gas industry. The case revolves around the primary choices in IAS 21, “The Effects of Changes in Foreign Exchange Rates,” specifically, the choice of functional currency and the choice of a presentation currency.<br><ul><li>To assess functional currency, students must apply the IFRS guidance and consider Encana’s segmented reporting.</li><li> To assess presentation currency, students must consider the needs and perceptions of its financial statement users.</li><li>To illustrate the impact of foreign currency reporting choices, students are expected to perform analysis on Encana’s US-dollar denominate debt.</li></ul>