Foreign Currency Fluctuations and Revenue Boeing Corporation has considerable no

Question

Foreign Currency Fluctuations and Revenue Boeing Corporation has considerable non-U.S. operations. The table below shows Boeing's 2015 Boeing Corporation revenue by geographic segment along with related exchange rates at the beginning and end of the year The exchange rates represent the foreign currency equivalent of SI 04 (BA) Revenue USD Strengthened Effect (Weakened) USD exchange rate Year ended December 31, 2015 ($ millions) Revenue 01/01/15 12/31/15 0.7063 0.9203 6.4952 3.6729 4.3044 1.3847 11.5642 15.5159 14.7414 17.2494 0.7543 0.8266 6.2025 3.6729 3.5046 1.1618 12,248 12,556 Europe . .. 2,601 1,870 1,398 1,875 56,827 39,287 $96,114 Required C. How could Boeing treat such a foreign exchange gain or loss in any non-GAAP disclosures the company might make?

Explanation / Answer

C. When the company is having its operations in multiple countries, they need to disclose the impact of Exchange rates. The presensation needs to be done based on Constant currency rates. Constant currency rates termed as a method of eliminating the fluctuation in exchange rates due to foreign country transactions.

The company should make appropiate non-GAAP disclosures to seperate out the foerign excahnge rate fluctuation for the exchange rate and the amount in constatnt curreny.

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