Browse CFA Level 2

Chapter 11: Multinational Operations—FX Basics

In this section

  • Local, Functional, and Presentation Currencies
    Discover the roles, distinctions, and accounting implications of local, functional, and presentation currencies for multinational entities under IFRS and US GAAP.
  • Spot, Forward, and Transaction Exposure
    Explore the fundamentals of spot and forward currency markets, transaction exposure, and practical hedging strategies under IFRS and US GAAP.
  • Identifying Monetary vs. Nonmonetary Items
    Discover how to classify monetary versus nonmonetary items in multinational operations and why these distinctions matter for currency translation under IFRS and US GAAP.
  • Practice Vignette: Simple FX Gains/Losses
    Master the fundamentals of recognizing and measuring simple foreign exchange gains and losses through a practical vignette scenario. Learn about key dates, spot rates, remeasurements, and hedge vs. speculative treatments under IFRS and US GAAP.
View the page source Edit the page History
Sunday, June 22, 2025 Monday, January 1, 1

Important Notice: FinancialAnalystGuide.com provides supplemental CFA study materials, including mock exams, sample exam questions, and other practice resources to aid your exam preparation. These resources are not affiliated with or endorsed by the CFA Institute. CFA® and Chartered Financial Analyst® are registered trademarks owned exclusively by CFA Institute. Our content is independent, and we do not guarantee exam success. CFA Institute does not endorse, promote, or warrant the accuracy or quality of our products.

Chapter 10: Executive Compensation and Deferred Plans
Chapter 12: FX Translation Methods and Adjustments