Unformatted text preview: is recognized in other comprehensive income (“OCI”), the transla tion differences are also
recognized in OCI.
For any subsidiaries, joint ventures or associates whose functional currency differs from the United States dollar,
foreign currency balances and transactions are translated into the United States dollar as follows: Assets and liabilities are translated at the rates of exchange at the consolidated balance sheet date; Revenue and expenses are translated at average exchange rates throughout the reporting period or at rates
that approximate the actual exchange rates; items such as depreciation are translated at the rate implicit in
the historical rate applied to the related asset; and Exchange gains and losses on translation are included in OCI. The exchange gains and losses are recognized in earnings upon the substantial disposition, liquidation or closure
of the entity that gave rise to such amounts.
iii. Cash and cash equivalents
Cash and cash equivalents include cash and highly liquid investments with a maturity of three months or less at
the date of acquisition.
Restricted cash is cash held in banks that is not available for general corporate use. iv. Short-term investments
Short-term investments include short-term money market instruments with terms to maturity at the date of
acquisition of between three and twelve months. The carrying value of short-term investments is equal to cost
and accrued interest. v. Long-term investments
Investments in entities that are not subsidiaries, joint ventures or investments in associates are designated as
available-for-sale investments. These investments are measured at fair value on acquisition and at each
reporting date. Any unrealized holding gains and losses related to these investments are excluded from net
earnings and are included in OCI until an investment is sold and gains or losses are realized, or there is objective
evidence that the investment is impaired. When there is evidence that an investment is impaired, the
cumulative loss that was previously recognized in OCI is reclassified from AOCI to the consolidated stateme...
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This document was uploaded on 03/30/2014.
- Spring '14