Welcome to Amsterdam and KubeCon, CloudNativeCon 2023. Join John Furrier, Savannah Peterson, Rob Streche, and you, Peacock as the cube covers the largest conference on Kubernetes, CloudNative, and open source technologies together with developers, engineers, and IT leaders from around the globe. Live coverage of KubeCon, CloudNativeCon 2023 is made possible by the support of Red Hat, the CNCF, and its ecosystem partners. Good afternoon, brilliant humans, and welcome back to KubeCon Europe. We are in beautiful Amsterdam, very excited to be here. My name is Savannah Peterson, joined by my co-host on his first day. Rob, how are you feeling? Awesome, this has been great. You're whole, I mean it's 430 day one and it's been jam-packed, you're doing awesome. You give me all the energy and the great guests that we have give me the energy as well, so this has been a fantastic day. Yes, actually we have the perfect pair of guests for this afternoon. Natalia and Kevin, thank you so much for joining us. You are on the developer advocate teams, both of you, at Red Hat, and this whole event is really about celebrating developers. How are you guys doing? Welcome to the show. I'm doing awesome, thank you. Love that attitude. For you, yeah. It's great, it's great. We're enjoying this conference and we're seeing there's a momentum for developers on Kubernetes and also the conference is reflecting that, so we're really enjoying that. It feels like the energy is back up. I'm assuming you guys have been in some of the other Kubecons and now I feel like we're sort of in a four times vibe. I don't want to jinx it, but finally got that energy up. Everyone smiles, the show floor is absolutely packed. I imagine it's busy for you guys, yeah? Oh yeah, yeah, yeah, yeah. It's been nonstop talking to customers, potential customers, we're doing demos and there's a lot of enthusiasm. People are happy to be here. Last year I was in Valencia and everybody with their mask and there was a lot of hesitancy and everything and this seems way more like how it was before. Bless, yeah, no, it's great to feel that energy. Yeah, I think it's great, especially when you were in the keynote and there were like 58% of the people, it's their first one, their first Kubecon, so I have to imagine a lot of those developers are coming to you guys and trying to figure out how do they take that first step and how do they get to a better experience with Kubernetes. If that's got to be a lot of the questions you must be getting in the booth. Right, yeah, we see lots of people, beginners and experts together, enthusiastic of Kubernetes and all the software, open source software around. They came to question, to hear, they really, you can see they're really happy about that and we are happy too, so this is great. Yeah, yeah, I think this is the first Kubecon where I'm really feeling like there's also a developer presence, whereas in, I feel like previous years it was a lot of focus on kind of more infrastructure side of Kubernetes and how do we get it all set up and configured and everything and now I feel like we're getting to the next level where, okay, now we have, most people are at least somewhat familiar with Kubernetes from the operations side and the developers are now like, hey, this is actually something that we can use, but how exactly do we use it and how do we get started with it and how can we get the feedback that we need to have our applications up and running but also in a stable way where we're not gonna be called two in the morning to fix things because there's unexpected things happening. So there's a lot of questions around how can we move our application? So we have at Red Hat, we have this and I'm sure it's not just at Red Hat but we really like to focus on this inner and outer loop kind of story where the inner loop is where the developers are doing their coding, they're doing their local tests and their local development, perhaps even setting up a local container but then they're committing their code and at that point, you go to this kind of outer loop where you have a pipeline that kicks off and then your application gets built and pushed to some registry and deployed with some sort of GitOps or whatever and so this whole kind of story where we go from beginning all the way to first, perhaps a testing cluster and a staging cluster and maybe even automatically to production. I mean, that's kind of the end goal, right? And so we're really working on making that as seamless as possible and we're getting a lot of traction with that. So we're building tools to help with that as much as we can. I have to imagine, to me it's, we've had seen a theme since we've been here around platform engineering and having been at Amazon and what was always talked about by the engineers on my team was, don't SRE me. They didn't want to be the SRE and get that 3 a.m. phone call to have to get up and fix it every time. So how do we have some split responsibilities? Are you seeing that and is that really, we're a lot of your efforts going into is to help people in that platform engineering, you know, when it's the hand-off part of it, it seems like. Yeah, yeah, I think it, yeah, I don't know. Right, right, no, I just want to add, you see the maturity of a software where you don't care much about infrastructure bits and you start talking about, you know, developer experience. I think Kubernetes and the industry get into this maturity. Now we're focusing on developer experience. To your point, it's really important because platform engineering, it started really as a new thing, right, from side reliability engineer or DevOps, just to focus on how to build platforms for developers, how to let them consume the platform or self-serve in the platform. So platform engineering is getting a very good momentum and Kubernetes, I think it's the right place where to do platform engineering and there are open source tools around that and Red Hat is joining a very popular open source software for platform engineering and internal developer platform called Backstage. We're bringing our enterprise expertise into this community project. We're joining this community and create a community project called Project Janus, which is a project, Backstage project, where we are building this developer portal for developers and we're building on top of that. How is the community responding to that? You guys, we've been talking about community since before we were even on stage. You're obviously super passionate about community. I can actually feel the energy from you guys about that. How has everything been received? How's it going? I think the Backstage community is pretty happy. With Red Hat joining the project, I mean, we have some leverage, I guess, in the open source communities. Some people may have heard of you before. Yeah, I like to think so. Yeah, yeah. It's been a few things. So it's been really positive and also talking to customers, what I've heard a lot is, our customers are building some sort of portal themselves in kind of custom, not really aware that in the communities there's projects like Backstage that are being built. And so there's a lot of enthusiasm among those people too that, hey, cool, like Red Hat is joining this project. It's on our team. Yes, exactly, yeah. So there's a lot of happiness. Yeah, I think that's the thing is that, and I got it out of the whole keynote this morning, was 190 some odd projects, and you're sitting there going, there's just so much going on. And I assume that's where your roles come in, is to help people understand, okay, this is what those projects do, because they didn't really go into it in the keynote today, but I'm sure that you're getting a lot of that, not only the people over in the other wing over here that have their booths there, but is that what you hear a lot of? Yeah, yeah, I mean, absolutely, again, talking about customers, but also the communities that we work in, it's hard to know all the projects that are here. I don't, because it's too much. But people need some sort of opinionated path to having things work and being able to not focus just on learning new projects and figuring them out and everything. So, I mean, there's definitely demand for opinion. If you see the CNCF landscape, it's a very gigantic map with tons of project opens for product, which is great, but then you need some pattern, right? Some blueprint, and with that as a, this concept of validated pattern. So our opinionated way to make, compose everything together, the most important bits, like, you know, for pipeline we use tecton, for github we use argocd, for internet developer port we use backstage, you know, we're connecting all the bit and making our path, but using all those open source projects and contributing to those projects into the communities. It's such a wonderful mesh too, when you've got a company like Red Hat and you've got all these open source projects. I'm curious, for you guys internally, what is the evaluation process like when you're figuring out which projects to participate in versus not? That's a good question. We have our office of CTO that see what's going on in the community. We're deciding also what project we should invest more with putting engineering. Shall we start a new one? Right, it's about investing cash time and resources a lot into these, yeah, keep going. So we're looking at existing project or looking also at our project. Shall we start something from our experience? Shall we look for other project? And so there's an office, there's a department that make this decision and then putting, you know, engineering efforts, marketing, and you know, all the product effort, building the product around those open source software. Yeah, and basically we're listening to people and see what are their pain points. That was going to be my next question. Right, absolutely, yeah, and try to address those.  However, there's some, you know, some decisions that were made and perhaps some things that the customers or, you know, the users are missing. And so we're, you know, like we have Podman already. Let's see how we can expand on top of that with a nice user experience that we, you know, that we've now been putting a lot of effort into to make it, you know, consumable on Windows, on Mac, on Linux, and kind of making a seamless experience, not just for containers, but making it into experience where developers can use this tool to have containers that can then, you know, be used to even go to, you know, be deployed to Kubernetes, to OpenShift. You can, you know, create yamls for Kubernetes directly from Podman Desktop. It's a whole bunch of things that you can do with Podman Desktop that are really cool. And there's a lot of effort that goes into that. But so that's one example of- And Podman was an initiative that started internally, right? We started creating Podman as an alternative container runtime open source, but with another approach compared to Docker, which was rootless and demo-less is another approach, splitting the code base. It started internally, right? Now the community is adopting more and more Podman. And also the Kubernetes is using a runtime container runtime interface. We have an open source implementation around that. And on top of that, this implementation is called Cryo. On top of that, we also defined and started doing a desktop application around Podman called Podman Desktop. So Linux, Mac, Windows developer can start building a container locally with Podman Desktop and then deploy their application, their pod application on Kubernetes anywhere, basically. So this is an example of internal initiative, right? Yeah. As we're talking about open source, how we manage open source projects. What is that feedback loop like with your community? I mean, you obviously got your gear to the ground and it's very clear you're both super plugged in. How do you get feedback from the Red Hat community, from everyone? What's that like? So we have a lot of people on the ground talking to customers. So we have the solution architects in all the different markets that we work in. So we talk a lot with them to get to see what does the customer say. And we also do a lot of sessions ourselves. So we have this Dev Nation program at Red Hat where we as developer advocates go and talk, do sessions at the customer and see like, hey, is this something that you're interested in? And see what they really do. Let's show them some examples of how they can use it. And we're getting a lot of nice feedback on that. But places like this too, you get so much good feedback. Fire hose, right? Yeah, exactly. I'm shy. And people are not shy to share their opinions here. That's true. Very true. There are not a lot of shy, you're either super shy or very open about your opinions throughout. There is, I guess, very open source, if you will, when it comes to your thoughts. And we love that. I mean, yeah, it can be good and bad. I mean, I want to hear it all. It was funny, because we ran into the developer, VP of development for an IOT company last night. And just by happenstance, we started having a discussion and he was like trying to figure out how to get started with Kubernetes. So something like Podman Desktop would be great for what he's trying to do in there. And I think that kind of stuff is super, super helpful to the developer community, because he's looking at it, everything's in VMs, and they're starting to build microservices. But I don't want to go up to a cloud and test it all out. It's all about increasing that complexity. Yeah. And I would assume that also helps them with a cost control thing, which is pretty important right now. I mean, this is given the times in the world. You know, I think that helps. Oh yeah, absolutely. Yeah, speak. Yeah, I was agreeing. Making the right choice on the right tools and making worth, right? Yeah, we have, I think a funny story about, so we have the OpenShift Sandbox, which is like a free version of OpenShift.  It's really cool. But so before we were, the default deployment was just a regular Kubernetes deployment. And so we also have OpenShift serverless based on Knative, right? So we scale up from zero based on the requests. And so we changed the default deployment to Knative serverless, which saved us a bunch of money on Sandbox to the point where now we can offer more resources for each Sandbox to the users because we have more resources available. I mean, that's a great example of how you can kind of save some money on the...  Well, you're giving it back into that. What I love about what you just said is we saved money so we're giving the community more. Right, yeah. Rather than just saying sweet. We're just going to skim that off the top, which I mean, I'm American capitalist. You know, I wouldn't blame you if that's what you wanted to do. But I think that's really important. I'm curious, you said something in the very beginning of our conversation, which, and I've been, well, you guys have been in the Kubernetes space probably longer than I have, but I've been hanging out here for about four or five years. And I would say up until about six months ago, we're still in a very early adoption phase when you look at the true scale of how people are deploying containers. Do you, from the energy I'm getting from you and what you were just saying, do you think we're starting to tip over where more and more people are only scaling up using Kubernetes or is it a hybrid? Where are we off at? What is your feeling, Natali? Well, I think there's a maturity of usage of Kubernetes. It's the de facto platform, the target platform for your app, right? Yeah. I don't know if in the local workstation you have Kubernetes, you might have some kind or mini cube, whatever, but remotely you might have some remote cluster, right? Or your production is Kubernetes. So there is this maturity and all the tools around are built on Kubernetes. I see that, I see this expertise. Even if the people are Kubernetes beginner, they want to learn, right? But some teams, some company has the production on Kubernetes most of the time. So it's a standard, like an operating system, right? Your target app is on Kubernetes. And that's the fact. That's an opinion and a half, I love that. Yeah. Yeah, we can see it's not 100% of the case, right? But most of the case is like that. So moreover, for, you know, when you have cloud native application or kind of modern application, most of the time is that the case. I love that. Well, thank you both for being here. Congratulations on all you've got going on. I loved hearing about the community integration with the projects. Natalia, Kevin, you're wonderful. Thank you. This is your first timers, but no one would have known had I not just said that. Rob, you're also doing fabulous, continued fabulous. My name is Savannah Peterson. We're here in beautiful Amsterdam for KubeCon EU. You're watching theCUBE, the source for high tech coverage.


THE WELL WAS DRIVE BESIDE THE DOOR, AND SO WE WENT WITH PALE AND CAN ACROSS THE FIELDS, BEHIND THE HOUSE, TO SEEK THE BROOK, IF STILL IT RAN. NOT LOTHED TO HAVE EXCUSE TO GO, BECAUSE THE AUTOM EVE WAS FAIR, THOUGH CHILL, BECAUSE THE FIELDS WERE OURS, AND BY THE BROOK OUR WOODS WERE THERE. WE RAN AS IF TO MEET THE MOON THAT SLOWLY DAWNED BEHIND THE TREES, THE BARON BOWS WITHOUT THE LEAVES, WITHOUT THE BIRDS, WITHOUT THE BREEZE. BUT ONCE, WITHIN THE WOOD, WE PAWSED LIKE GNOMES THAT HIT US FROM THE MOON, READY TO RUN TO HIDING, NEW WITH LAUGHTER, WHEN SHE FOUND US SOON. EACH LAYED ON ANOTHER, A STAYING HAND, TO LISTEN, AIR WE DARE TO LOOK, AND IN THE HUSH WE JOINED TO MAKE, WE HEARD, WE KNEW WE HEARD THE BROOK.  END OF POEM, THIS RECORDING IS IN THE PUBLIC DOMAIN. THE HAIR AND THE TORTUS, BY MARMA DOOK PARK, RED FOR LIBERVOX.ORG, BY CAROLIN FRANCIS.   I am very contented, the creature replied, though I walk but a tortoise pace, but if you think proper the point to decide, we will run half a mile in a race. Very good, said the hare, said the tortoise, proceed, and the fox shall decide who has won. Then the hare started off with incredible speed, but the tortoise walked leisurely on. Come tortoise, friend tortoise, walk on, said the hare. Well, I shall stay here for my dinner. Why to take you a month at that rate to get there? Then how can you hope to be winner? But the tortoise could hear not a word that she said, for he was far distant behind. So the hare felt secure while at leisure she fed, and took a sound nap when she dined. So at last the slow walker came up with the hare, and there fast asleep did he spy her, and he cunningly crept with such caution and care that she woke not although he passed by her. Well, now, thought the hare when she opened her eyes, for the race, and I soon shall have done it. But who can describe her chagrin and surprise when she found that the tortoise had won it? Moral. Thus plain-plotting people we often shall find will leave hasty confident people behind. End of poem. This recording is in the public domain. I am he that aches with love by Walt Whitman. Read for LibriVox.org by Alan Davis Drake. I am he that aches with amorous love. Does the earth gravitate? Does not all matter aching attract all matter? So the body of me to all I meet or know. End of poem. This recording is in the public domain. The Listeners by Walter De La Mar. Read for LibriVox.org by Carolyn Francis. Is anybody there? said the traveller knocking on the moonlit door, and his horse in the silence chomped the grasses of the forest's ferny floor, and a bird flew up out of the turret above the traveller's head, and he smote upon the door a second time. Is there anybody there? he said. But no one descended to the traveller. No head from the leaf-fringe sill leaned over and looked into his grey eyes, where he stood perplexed and still. But only a host of phantom listeners that dwelt in the lone house then stood listening in the quiet of the moonlight to that voice from the world of men. It thronging the faint moonbeams on the dark stair that goes down to the empty hall, harkening in an air stirred and shaken by the lonely traveller's call. And he felt in his heart their strangeness, their stillness answering his cry, while his horse moved cropping the dark turf, near the starred and leafy sky, for he suddenly smote the door even louder and lifted his head. While them I came and no one answered that I kept my word, he said. Never the least stir made the listeners, though every word he spake felt echoing through the shadowiness of the still house from the one man left awake. I, they heard his foot upon the stirrup, and the sound of iron on stone, and how the silence surged softly backward when the plunging hoofs were gone. End of poem, this recording is in the public domain. Many roses in the wind are tapping at the window-sash, a hawk is in the sky, his wings slowly begin to plash. The roses, with the west wind wrapping, are torn away, and a splash of red goes down the billowing air. The bill hangs the hawk, with the whole sky moving past him, only a wing beat proving the will that holds him there. The daisies in the grass are bending, the hawk has dropped, the wind is spending all the roses, and an ending rustle of leaves washes out the rending cry of a bird. A red rose goes on the wind, ascending, the hawk, his wind swept away, is wending easily down the sky. The daisies sending strange white signals seem intending to show the place once the scream was heard. But, oh my heart, what birds are piping! A silver wind is hastily wiping the face of the youngest rose. And oh my heart, cease apprehending! The hawk is gone, a rose is tapping the window-sash as the west wind blows. The hawk-knock-t is no more than a red rose wrapping, and fear is a plash of wings. What then, if a scarlet rose goes flapping down the bright grey ruin of things? End of poem. This recording is in the public domain. Lucifer in Starlight by George Meredith Red for LibriVox.org by Alan Davis Drake On a starred night, Prince Lucifer up rose. Tired of his dark dominion, swung the fiend above the rolling ball in cloud-part screened, where sinners hugged their specter of repose. Poor prey of his hot fit of pride were those. And now, upon his western wing he leaned. And now his huge bulk over Africa's sands careened. Now the black planet shadowed arctic snows, soaring through wider zones that pricked his scars with memory of the old revolt from awe. He reached a middle height, and at the stars, which are the brain of heaven, he looked and sank. Around the ancient track marched, rank on rank, the army of unalterable law. End of poem. This recording is in the public domain. Old Meg She Was Egyptian by John Keats Red for LibriVox.org by Sergio Baldelli in Rome, November 2007 Old Meg She Was Egyptian and lived upon the moors. Her bed it was the brown heath turf, and her house was out of doors. Her apples were swore to blackberries. Her current spores a broom. Her wine was due of the wild white rose. Her book churchy on the tomb. Her brothers were the craggy hills, her sisters large and trees. Alone with her great family, she lived as a she did please. No breakfast had she many morn, no dinner many noon. Instead of a supper she would stare full hard against the moon. At every morn, over wood-bine-fresh, she made her gullonding, and every night, the darker glen you she wove and as she would sing. And with her fingers old and brown, she plaited mezzo-rushes, and gave them to the cottagers as she met among the bushes. Old Meg was brave as Margaret Queen, and tall as Amazon, and no dread blanket cloak she wore.  End of a poem, this recording is in the public domain. The Milkmaid by Marmaduke Park, read for LibriVox.org by Carolyn Francis. A milkmaid who poised a full pail on her head, thus mused on her prospects in life it is said, Let's see. I should think that this milk will procure one hundred good eggs or four score, to be sure. Well then, stop a bit. It must not be forgotten. Some of these may be broken, and some may be rotten. But if twenty-four accidents should be detached, it will leave me just sixty sound eggs to hatched. Well, sixty sound eggs? No, sound chickens, I mean. Of these some may die. Well, suppose seventeen, seventeen, not so many, say ten at the most, which will leave fifty chickens to boil or to roast. But then there's their barley, how much will they need? Why they take but one grain at a time when they feed, so there's a mere trifle. Now then, let us see, at a fair market price, how much money there'll be. Just chilling a pair, five, four, three, and six, to prevent all mistakes that low price I will fix. Now what will that make, fifty chickens, I said, fifty times three and six pence? I'll ask Brother Ned. Oh, but stop! Three and six pence a pair I must sell them. Well a pair is a couple. Now then, let us tell them. A couple and fifty will go, my poor brain, why just a score times and five pair will remain. Twenty-five pair of fowls, now how shameful it is, that I can't reckon up as much money as this. Well, there's no use in trying, so let's give a guess. I will say twenty pounds, and it can't be no less. Twenty pounds I am certain will buy me a cow, thirty geese, and two turkeys, eight pigs and a sow. Now if these turn out well at the end of the year, I shall fill both my pockets with guineas, tis clear. Then I'll bid that old tumble-down hovel good-bye, my mother shall scold, and my sisters they'll cry. But I won't care a crow's egg for all they can say, I shan't go to stop with such beggars as they. But forgetting her burden, when this she had said, the maids superciliously tossed up her head, when alas, for her prospects, the milk-pale descended, and so all her schemes for the future were ended. Moral. This moral, I think, may be safely attached. Reckon not your chickens before they are hatched. End of poem. This recording is in the public domain. Native Moments. By Walt Whitman. Give me now, libidinous joys only. Give me the drench of my passions. Give me life course and rank. Today I go consort with nature's darlings, to-night too. I am for those who believe in loose delights. I share the midnight orgies of young men. I dance with the dancers, and drink with the drinkers. The echoes ring with our indecent calls. I pick out some low person for my dearest friend. He shall be lawless, rude, illiterate. He shall be one condemned by others for deeds done. I will play a part no longer. Why should I exile myself from my companions? O you shunned persons, I at least do not shun you. I come forthwith in your midst. I will be your poet. I will be more to you than to any of the rest. End of poem. This recording is in the public domain. On a favorite cat, drowned in a tub of goldfishes. By Thomas Gray. Read for lipervox.org by Jake Baker, October 2007. Twas on a lofty vase's side, where China's gazed art had died, the azure flowers that blow. Demirused of the tabby kind, the pensive salima reclined. Gazed on the lake below, her conscious tale, her joy declared. The fair round face, the snowy beard, the velvet of her paws. Her coat, that with the tortoise-vies, her ears of jet and emerald eyes, she saw and purred applause. All had she gazed, but missed the tide, two angel forms were seen to glide, the genie of the stream. Their scaly armors, Tyrion Hugh, through richest purple to the view, betrayed a golden gleam. The hapless nymph with wonder saw, a whisker first, and then claw, with many an ardent wish. She stretched in vain to reach the prize. What female heart can gold despise? What cat's averse to fish? Presumptuous maid with looks intent, again she stretched, again she bent, nor knew the gulf between. Malignant fate sat by and smiled. The slippery verge her feet beguiled, she tumbled headlong in. Eight times emerging from the flood, she mewed to every watery god, some speedy aid to send. No dolphin came, no nirid stirred, nor cruel Tom, nor Susan heard. A favorite has not friend. From hence ye beauties undeceived. No one false step is nere retrieved, and be with caution bold. Not all that tempts your wandering eyes and heedless hearts is lawful prize, nor all that glisters gold. End of poem. This recording is in the public domain. A WHITE WIND NUMMING THE WORLD by Christopher J. Brennan A WHITE WIND NUMMING THE WORLD to a mask of suffering hate, and thy goblin pipes have scurled all night at my broken gate. O heart, be hidden and kept in a half-light, colored and warm, and call on thy dreams that have slept to charm thee from hate and harm. They are gone, for I might not keep my senses beaten and dined. There is no peace but a grey sleep in the paws of the wind. SLEEPLESS I LISTEN TO THE SURGE AND DRONE AND DRIFTING ROAR OF THE TOWN'S UNDERTONE, till, through quiet falling rain, I hear the bells tolling and chiming their brief tune that tells day's midnight end. And from the day that's over no flashes of delight I can recover, but only dreary winter streets and faces of people moving in loud, clanging places, and I in my loneliness longing for you. For all I did to-day, and all I'll do to-morrow, in this city of intense, arteryed activities that throb and strive, is but a beating down of that suspense which holds me from your arms. I am alive, only that I may find you at the end of these slow-striking hours I toil to spend, putting each one behind me, knowing but this, that all my days are turning toward your kiss, that all expectancy awaits the deep, consoling passion of your eyes that keep their radiance for my coming, and their peace for when I find in you my love's release. A Reasonable Affliction by Matthew Pryor, read for LibriVox.org by Carolyn Francis. She hears the storm by Thomas Hardy. Read for LibriVox.org by Clarica. There was a time in former years, while my roof-tree was his, when I should have been distressed by fears at such a night as this. I should have murmured anxiously, the prickling rain strikes cold, his road is bare of hedge or tree, and he is getting old. But now the fitful chimney roar, the drone of thorn-combe trees, the frume in flood upon the moor, the mud of mel-stock lees, the cantile slanting sooty wicked, the thuds upon the thatch, the eaves drops on the window-flicked, the clacking garden-hatch, and what they mean to wayfarers I scarcely heed or mind, he has won that storm-tight roof of hers which earth grants all her kind. End of Poem. This recording is in the public domain. I, being born a woman and distressed by all the needs and notions of my kind, am urged by your propinquity to find your person fair, and feel a certain zest to bear your body's weight upon my breast, so subtly as the fume of life designed, to clarify the pulse and cloud the mind, and leave me once again undone, possessed. Think not for this, however, the poor treason of my stout blood against my staggering brain, I shall remember you with love, or season my scorn with pity. Let me make it plain. I find this frenzy insufficient reason for conversation when we meet again. End of Poem. This recording is in the public domain. The Sound of Trees by Robert Frost I wonder about the trees. Why do we wish to bear forever the noise of these, more than another noise, so close to our dwelling-place? We suffer them by the day, till we lose all measure of pace and fixity in our joys, and acquire a listening-air. They are that that talks of going, but never gets away. And that talks no less for knowing, as it grows wiser and older, that now it means to stay. My feet tug at the floor, and my head sways to my shoulder sometimes, when I watch trees sway, from the window or the door. I shall set forth for somewhere. I shall make the reckless choice some day, when they are in voice and tossing, so as to scare the white clouds over them on. I shall have less to say, but I shall be gone. End of Poem. This recording is in the public domain. So we'll go no more aroving. By Lord George Gordon Byron Red for LibriVox.org by David Butler So we'll go no more aroving so late into the night, though the heart still be as loving, and the moon still be as bright. For the sword outwears its sheath, and the soul outwears the breast, and the heart must pause to breathe, and love itself have rest. Though the night was made for loving, and the day returns too soon, yet we'll go no more aroving by the light of the moon. End of Poem. This recording is in the public domain. Summer by Amy Lowell Red for LibriVox.org by Alan Davis Drake Some men there are who find in nature all their inspiration, hers the sympathy which spurs them on to any great endeavor. To them the fields and woods are closest friends, and they hold dear communion with the hills. The voice of waters sooth them with its fall, and the great winds bring healing in their sound. To them a city is a prison house, where pent up human forces labor and strive, where beauty dwells not, driven forth by man, but where in winter they must live until summer gives back the spaces of the hills. To me it is not so. I love the earth and all the gifts of her so lavish hand. Sunshine and flowers, rivers and rushing winds, thick branches swaying in a winter storm, and moonlight playing in a boat's wide wake. But more than these, and much, ah, how much more. I love the very human heart of man. Love me spreads the hot, blue midday sky. Far down the hillside lies the sleeping lake, lazily reflecting back the sun, and scarcely ruffled by the little breeze which wanders idly through the nodding ferns. The blue crest of a distant mountain tops the green crest of the hill on which I sit. And it is summer, glorious deep-toned summer, the very crown of nature's changing year, when all her surging life is at its full. To me alone it is a time of pause, a void and silent space between two worlds, when inspiration lags and feeling sleeps, gathering strength for efforts yet to come. For life alone is creator of life, and closest contact with the human world is like a lantern shining in the night to light me to a knowledge of myself. I love the vivid life of winter months in constant intercourse with human minds, when every new experience is gain, and on all sides we feel the great world's heart, the pulse and throb of life which makes us men. And a poem this recording is in the public domain. To the Virgins to Make Much of Time by Robert Herrick Read for LibriVox.org by David Butler Gather ye rose-butts while ye may, old time is still a-flying, and this same flower that smiles today, tomorrow will be dying. The glorious lamp of heaven, the sun, the higher he is a-getting, the sooner will his race be run, and nearer he is to setting. That age is best which is the first when youth and blood are warmer, but being spent the worse and worst times still succeed the former. Then be not coy, but use your time, and while ye may, go marry. For having lost but once your prime ye may forever tarry. The Wetted Lover by Christopher Morley Read for LibriVox.org by Carolyn Francis I read in our old journals of the days when our first love was April-sweet and new, how fair it blossomed and deep-rooted grew despite the adverse time, and our amaze at moon and stars and beauty beyond praise, that burgeoned all about us, gold and blue the heaven arched us in, and all we knew was gentleness. We walked on happy ways. They said by now the path would be more steep, the sun sets paler and less mild the air. Riotly we heeded not. It was not true. We will not tell the secret. Let it keep. I know not how I thought those days so fair, these being so m-


Hello and welcome to this session. This is Professor Farhad and this session we would look at the current method that deals with the translation of foreign currency financial statements. This topic is covered in international accounting covered in advanced accounting. And by the way, I do have this topic covered and in my advanced accounting course as well. So if you if you went over this explanation, you're not you are not satisfied. You can always go to my advanced accounting. This topic also covered on the CPA exam and the ACCA exam. As always, I would like to remind you to connect with me on LinkedIn.  You want to make sure to subscribe also on my website for head lectures dot com. I do offer additional resources for all the courses. Please check it out if you are interested. If you are looking for a study body, I suggest you check out study body pal dot com. It's an artificial intelligence driven study body platform that match you with a study body. They are located in 85 countries in 2800 cities. So today we're going to talk about the second method and the reason I say the second method because in the prior years in prior session, we looked at the first method and the two methods are the temporal method and the current rate method. Now, we already covered the temporal method in the prior session. In this session, we will cover the current method and one more time the terms these terms are not used by FASB or the IASP. Those just use in practice. If you'd like to learn about the temporal method, I'm going to put the description in the link link in the description so you could always look at it. So let's take a look at the current rate method. What is the current rate method? Well, let's talk about the temporal method very quickly. The temporal method basically state that you should prepare your financial statement as if the parent company entered into those transaction as if. Now, with the current rate method, it's a little bit different. The underlying concept, the underlying methodology is that you have an exposure to a foreign currency. Why? Because you are operating in that foreign country. Therefore, you have an exposure to a foreign currency risk. Therefore, your financial statements should reflect that risk. So the fundamental concept underlying the current rate method is that the parent's entire investment in a foreign operation is exposed to foreign currency risk and the translation. So when you translate the financial statement, they should reflect this risk. So simply put, if you really think about it, you'll have to report things at current rate. So if you are exposed to foreign currency risk, how do you show that risk? Well, guess what? I would report my numbers at the current rate, which shows me if I am, I have a gain or I have a loss of my adjustment. But this is what the current rate method. So remember, current rate from the word current, it means the current market value. So you have to report everything at current market value. Once again, the reason is you have exposure, show it. Now, how does your expo? How do you translate your balance sheet numbers? Okay, to measure the net investment and net investments is asset minus liability. So the foreign exchange to the foreign exchange risk, all your assets and all your liabilities of the foreign operation are translated using the current exchange rate. Quite simple, very easy to remember concept. It's the current method, translate all assets and all liabilities. Remember, when it comes to stockholders equity, as I told you in the prior session, whether you are using the current method or the temporal method, which is the remeasurement method. You would always use historical exchange rate for the stockholders equity with a slight complication for the retained earning, which we'll see next in the next session. So this is the balance sheet. So the balance sheet exposure measured by the current rate method is equal to the foreign operation net asset position, which is net asset as assets minus liability. If we have more assets than liabilities, then we have a net asset position or basically equity, net asset is equity position. Let's talk about the income statement. If you remember from the temporal method, the income statement account are supposed to be translated on the date of the exchange. So remember, I told you if McDonald sells burger throughout the day, the rate will change throughout the day. So in theory, if they want to follow the rule 100%, they're going to have to translate each transaction at a different rate, but that doesn't really happen because it's not practical. So under the current rate method income statement are translated using the exchange rate in effect at the date of the accounting recognition. Well, again, same thing, that's not possible. In most cases, an assumption is made that the revenue and expenses is incurred evenly throughout the year. Therefore, we use the average for the period exchange rate. So we cannot really keep track of the exchange rate on an hourly or minute basis for that matter. But unlike the temporal method, cost of goods sold, depreciation on property, plant and equipment and amortization of intangible also use the average exchange rate. Under the temporal method, we use the historical rate. Under this method, we use the average exchange rate, which is easier. It's just the average. Now, bear in mind, when it comes to gain and losses, however, when income items such as gain or loss on a sale of an asset occur on a specific point in time, the exchange rate at that date should be used for the translation. So for gains and losses, we cannot assume anything. For gains and losses, we have to know exactly what happened on that date, what was the exchange rate, and we'll go with that exchange rate. So gains and losses, the reason is this. I mean, let me explain the reason. Maybe it will make it easier for you to remember why revenues and expenses are, we use the average. Gains and losses don't happen very often. They happen once in a while, maybe once a month, maybe once a year, maybe twice a year, maybe five times a year. There's a specific number of events. So it's easy to keep track of those events and easy to keep track of the exchange rate of those events versus revenues and expenses that are occurring continuously throughout the day, throughout the night. I mean, if you have an online business, you're selling all night long, all day long, and if you're operating in a foreign country, how are you going to translate those transactions constantly? So that's why we use the average. But for gains and losses, those transactions are considered to be incidental, very specific events. Therefore, we can keep track of the date. Now eventually we're going to have to make a translation adjustment, which we'll talk about when we look at the numbers, but here's what you need to know. Assuming that assets are more than your liabilities, you'll have a positive translation adjustment when the foreign currency appreciate and a negative translation adjustment when the foreign currency depreciate. Why? Because you have more assets than liabilities. Now, you could take the statement and flip it if liabilities are more than assets and it will work. Again, the only reason this will make sense is when we work an actual example. But if you have more assets, let's just think about it for a second here. You have a positive translation when the foreign currency appreciates. So if you have assets, let's think about assets. Assets are account receivable. Let's assume you have an account receivable. And the foreign currency goes up. That's good for you. Why it's good for you? Because if my foreign currency went up and I have receivable, let's assume I'm a U.S. company, I'm going to translate my receivable into more dollar. Now, if I have more liabilities, I have more liabilities than receivable. Let's represent liabilities by accounts payable and the foreign currency goes up. I have to pay. I have to pay. Therefore, my U.S. dollar will buy me less foreign currency than I have a negative translation. Negative translation means a loss. And the opposite is true if you have more liabilities than asset. But this is the basic idea. The translation adjustment arising when the current rate method is used is also unrealized. So also just like with the temporal method, when we did the translation, we are translating the whole financial statement. We are not dealing with one transaction. One transaction, if we have an exposure, if we buy and if we sold from one customer or we buy from one customer, eventually we're going to have to settle this transaction through cash. Foreign currency adjustments, translation adjustments apply to the whole financial statements. So they are in a sense unrealized. When do they become realized? They become realized gain or losses if the foreign operation is sold. If we sold the whole operation and the foreign currency proceeds from the sale are converted into the parent company. This is when the gain or the loss is realized now. But this happens when we actually sell the business. And that's not what we are doing here. So the point I want you to remember when we talk about the temporal method and the current rate method, which are those are translation method. You are translating the whole financial statement. You are not dealing with one transaction. Bear that in mind. Just this is the big picture. Okay. And let's take a look at the big picture again. This is the temporal method what we learned in the prior session and I showed you this earlier. Now we're going to look at the current rate method. Easy current rate method assets, everything current liabilities, everything translated at the current rate stockholders equity. As I told you in the prior session, those are used the historical rate revenues and expenses. Everything is the average notice the when it comes to the temporal method when it comes to certain expenses like cost of goods sold depreciation, amortization. They use historical and the reason is because they use historical for those related assets like property and equipment is depreciated intangible is amortized prepaid expenses. We have to use the historical because they are reported at historical rate. So notice the current rate method you can you can think of it as easier because you're using the average for the income statement and the current rate for balance sheet and liabilities stockholders equity. Either way, you would have to use the historical rate. If you have any questions, any comments about this session, please email me if you need additional resources or practice more. What I suggest you do go to my website and consider subscribing. This is an investment in your career. Good luck and study hard, especially if you're studying for your CPA exam. Good luck.


One, two, go! Stay there, alright? Yeah. Are you hurt? Yeah.  I'm going to get up there and get him to move in and out. Let's do both of your hands. We'll do a thorough search and we'll get there. Yeah. Alright. Does he have any injuries, Sergeant? Yeah, did he have any injuries? Just across? Yeah, that's pretty good though. Okay, perfect. Put it in. Thank you. You won't start acting crazy.


What's up guys Michael here with Jaspie's happy father's day to all the fathers out there We are about to do the 2023 panini 3 and 2 10 box case break number four And it was a Pyt so no need for randomizers if you were in the R&B though the Randomizer for that was just posted So let's switch What's up Justin? So we do have Our list right here. It was a Pyt so everyone should remember Swagged out. Yeah, I mean it's my I got a full day You're just seeing me. So I feel like I've got a I've got a show out show up and show out But we do have all the teams here, I feel like it playing in the college world series And then all the teams of the R&B next to it are random number block teams so that is the team list and then again Here are the teams there and all the numbers and the names right there Thanks Justin. I thought about it real hard before I came to work today I was like, do I do this are people gonna laugh at me? Are people gonna like it? but Chose I chose to go with it. We'll see how long it lasts though Anyway, we are all set to pop it open this case Just get rid of it first time Opening this product so I Know it's like an auto a man and then like three numbered cards. I believe I'm not sure Where each Each card is gonna be so we're gonna find out when I open this first box here And we'll go from there Full case break Let's get into it. Good luck to everybody and thank you to all the people who bought team straight up and thank you to Thank you to the people who got into the R&B Yeah, James. I just I'm not sure like where they are. Okay, so the case cards are gonna be on top. I Guess we'll just go one by one first card is a Zach V Five out of ten Nice patch there that is going to Colorado That is Ryan Draws first blood in the break. Oh is Daniel is spinole Rookie patch an autograph at a 99 for Cleveland. That's going to Eddie Game worn there, and then it looks like oh we got a pack up, right? Okay So now The next box is out. I'll know where all the cards are But that we've got a Mike mick able out of 25 there Philly that is D. Y. Juan Marichael Marichael at a 99 for San Fran That is Jeff in the last card Francisco Alvarez full count out of 150 For the Mets and that's going to Michael All these will get sleeved Okay, now I'm ready for the rest of the boxes Justin played nine holes with my pops a little tore up or ready to see MJ ball out with the heads. Well, I'm ready To get some hits. I hope you had some fun playing golf Maybe watching the U. S. Open On the side maybe that's what I'm doing. I got it right here on the TV Clark when the Clark's got a two-stroke lead. Oops We'll go like this. I've got an idea it's out first And we'll go with the pack and we'll leave this on top. There's we'll go like this Actually, we'll just not enough for it. I'll take you Robin Ventura out of 99 a MacCovey San Fran out of 99 and a Wade Boggs out of 150 for Boston It's going to Raymond. I believe I put the auto on top. So go with the bottom one first Prospect jerseys Robert Hassel for Washington out of 25 24 out of 25 that's going to Ed We've used drifted to the Padres. It's probably in that deal The Soto deal I believe we've got for Washington again That's that Ryan Zimmerman. Wow Ryan Zimmerman Lone Star bat relic and auto out of 20 also going to Ed That's a pretty sick car Player used material That's awesome. There's an LSU baseball. So then I take it you're an LSU fan I actually was not able to watch any golf yesterday also Because it was my sister's Bot mitzvah. I was a little bit busy all day yesterday We've got a Hal Neuhauser out of 25 for Cleveland Duke Schneider for the Dodgers out of 25 as well sluggers Los Angeles Dodgers as Ryan And then we've got a Cal Ricken out of 20 for Baltimore Let's go to Francis Cincinnati. Looks like it's sideways Barry Larkin sweet quad patch and autograph game worn out of Oh right there in the middle out of 25 Going to Sinsey. That's Francis Sweet hit there and then prospect dual jerseys Brady house out of 49. That's for Washington again Ed Taking that one down. Oh sick Ichiro That is out of 32 and Seattle is a random number block team. I believe yep so Put these down just like an explain it real quick for those who don't know how the random number block works It is that Last number there. So 27 out of 32 Spot seven. That's James In the sweet Ichiro kind of like a little color match there also and we've got a Pete Rose Out of 150. It looks like Johnny Bench behind that both gonna be for Cincinnati These are going to Francis 150 and Johnny Bench Also out of 150 there This one is the patch Harry Ford You know we hit one of these But this one serial number think up Harry Ford for Seattle prospect auto there last time we hit this as prime numbers It was not numbered. So they had to randomize it But that is 40 out of 200 that's going to spot zero James again Nice hit there. I Was wrong by the way. That was not the Patch our patch here though Luke Appling for Chicago 49 is Let's see if this is a Chicago Cubs though Luke Appling oh For the White Sox Okay, so Chicago White Sox is Ed Cool, all right into the halfway point of the case here Go for this one first that the auto is on the bottom We've got a Roberto Clemente out of 50 for Pittsburgh. That's John another Pittsburgh there It's like one out of 99 first on print Henry Davis former first over one first overall pick and Hoyt Willem We're gonna have to look up this one as well I'm just because it looks like White Sox though, but I just want to be sure Because the Cubs are a R&B team Hoyt Willem Yeah, so that's gonna be for the White Sox Which is Ed Patch here. Is that a redemption? Okay. Well, we'll save that then Full count swatches So Robin yelp nice out of 35 Going to Milwaukee. That's D. Why game-worn materials there. We got a redemption rookie dual Jersey autographs two strikes card number one Francisco Alvarez Nice I'm not sure what a two strikes is out of but Francisco Alvarez. That's gonna go to the Metz Michael Cohen Nice hit there a lot of people are high on Francisco Alvarez Now I'm not gonna mess this one up Just make sure it's on top now. Here we go pack we've got Jack Morris For Detroit, which I believe is a random number block team. Yes, it is 131 out of 150 spot one That goes to Steve and Detroit again Hal newhauser that is 94 out of 99 Spot four is Steve again So we got an extra card Pete Rose out of 99 for sincey and And Joe DiMaggio for the Yankees out of 150 Yankees is Matt Smith a patch here out of 25 Devison de los Santos for the D-backs nasty patch there. That's D. Why It is 19 out of 25 It's not game-worn a player one, but a sick patch there check out our auto Randy also for the D-backs. That's D. Why? Well, it's two out of two Where'd it go? Where'd Joe put it two out of two Randy Johnson? Autograph timeless signature or no, sorry legendary signatures. I'm thinking of Thomas moments Yeah, super sick. That's for Arizona D. Why? Super sick hit there. We'll go this way so That Jim Bunning out of 99 for Philly That's D. Why? seven out of 15 Al Kline That's like gold foil there. Detroit is a R&B team spot seven is James nice hit there James and then For D. Why again and the diamond backs got a drew Jones All prospect team and of the top prospects in baseball there Nice sideways prospect jerseys Bobby Miller 23 out of 25 Man, it's he has stud had a bit of a tough game the other night but I Am really high on this guy out of 25 for the Dodgers Ryan nice little two-color patch there and And our auto Day one autographs South Freilich one of one. Oh wow South Freilich You got a team on here Milwaukee for the Brewers D. Why? Got a one-on-one nice Let's see my hands must be a little cold because you can see the Frost All right three boxes left Liberero senior Montreal That is Washington Ed We got Joe Morgan for Cincinnati out of 32 and on the horizon Daniel Espino For Cleveland out of 150. It's going to Eddie. That's Vlad there. It's like for the Angels prospect quad jerseys Zack Nito out of ten That is eight out of ten there Los Angeles Angels are a R&B team. So number eight That's going to Steve. Let's try to make sure number eight Steve taking that one and our auto here is horizontal for New York Kevin Parada One out of eight Rookie dual patch autograph the Mets are Michael Cohen. It's nice Another low-numbered hit Oh, I didn't ring the bell for the one of one. That's too late The Tristan Casas out of 150 for Boston for Raymond Temple at the top there Elijah Green out of 25 for the Nats that's Ed and And a Randy Johnson for the D-backs out of 99 that is going to DIY catch here horizontal prospect jerseys Tristan Casas Out of 49 there. That is for Raymond and the Red Sox player worn out of 25 Rookie for Toronto Ricky T Teedman for the Jays which are a R&B team That is six out of 25 spot six is Nicole Nice dual patch rookie out of there Going to Nicole we are down to our last box of the break. We've got three and two Break Meany three and two breaks number five and six on the site right now Jaspie's case breaks calm. I'm not sure. I'm sure we'll pop number five and R&B You know all the teams don't sell out, but yeah, those are live on the site right now Curtis Mead out of 150 for Tampa, which is an R&B 124 out of 150 spot number four is Steve Steve taking that one and we've got a Willie McCovey for the Giants That's going to I totally blocked my list here The Giants is Jeff Then another Randy Johnson out of 25 going to DIY and the D-backs So DIY if you're a Randy Johnson collector You did pretty good in this break last patch here out of 25 Jace jump for Detroit, which is a random number block team It is nine out of 25 spot nine is Ryan Ryan H and our last auto here Let's make it a big one Reggie Crawford two out of five lone star patch and autograph Player warm patch there Two out of five Pretty good That is going to San Fran, which is Jeff Gordon Sweet so That does it for this break Quick recap. I'm just gonna fly through them. Just show the big ones Got the Kevin Prada out of eight South Freilich one of one The Reggie Crawford out of five The Randy Johnson two out of two Sick one there the Francisco Alvarez redemption Harry Ford The Barry Larkin Ryan Zimmerman and Yeah, so that does it for Switch it over here. Sorry. I was looking up That does it for 2023 Panini three and two ten box case break number four like I said Five and six are live on Jaspies case breaks calm Yeah, that does it so I'll see you guys in the next one. Bye guys