Temp/AC method always get me. I notice for COGS, and temporal method, it's not as easy as finding the COGS in the I/S and multiple that by Historical Rate. It's rather determined by a mix of rates under LIFO or FIFO.
Anyone else having issues doing the COGS portion (temp/ac method)? What's your approach when calculating the COGS, ie Temp Method...作者: tobeornottobe 时间: 2011-7-11 19:27
I have drilled into my head it is historical for temporal and average for all current ...try not to complicate things much beyond that if I can help it!作者: senlinlang 时间: 2011-7-11 19:27
For temporal method expenses related to NonMonetary assets are found by translating at the same rate used to translate the asset
so for COGS you translate at the same rate used for the inventory sold. For companies that buy their inventory over time this would mean using many different historical rates (not just one average historical rate; though as a sidebar an ave. rate can be used under certain circumstances). Depending on whether FIFO or LIFO is used you would use those corresponding exchange rates.
The easiest way I've found is just writing out on a piece of paper the inventory that was sold, exchanging each piece individually and then adding them together.
Like this:
