Advanced Accounting: Multi-national companies are regularly involved in transactions that result in receivables and payables denominated in currencies other than their functional currency. Under U.S. GAAP financial statements must be denominated in U.S. dollars. Provide a detailed discussion about the financial statement impact of receivables and payables denominated in a currency other than the U.S. dollar. To facilitate your discussion consider the following: why the value of the U.S. dollar changes in relation to other currencies, the implications of the U.S. strengthening or weakening, how are the financial statements effected when receivables and payables are translated to U.S. dollars.