Question

10. The functional currency of Phall Inc.'s subsidiary is the Euro Phall borrowed Euros AS A partial hedge against its investment in the foreign subsidiary. In preparing its consolidated financial statements, Phall's debit balance or its translation adjustment exceeded its Rain on its hedge on the borrowing. How should the translation adjustment and the gain on its hedge be reported on the consolidated financial statements? a. The translation adjustment should be netted against the hedge gain and reported on its net income statement. b. The translation adjustment should be netted against the hedge gain and reported as OCI on its Comprehensive Income Statement c. The translation adjustment should not be netted against the hedge gain. The translation adjustment should be reported as OCI and the hedge gain should be reported on its net income statement 11. The AOCI foreign currency translation adjustment is a. Reported separately in the Consolidated Statement of Stockholders' Equity b. Included within the Retained Earnings figure in the Consolidated Statement of Stockholders' Equity C. Reported in the Net Income section of the Comprehensive Income Statement d. Reported in the Other Comprehensive Income of the Comprehensive Income Statement 12. The annual foreign currency translation adjustment is a. Reported separately in the Consolidated Statement of Stockholders' Equity. b. Included within the Retained Earings figure in the Consolidated Statement of Stockholders Equity c. Reported in the Net Income section of the Comprehensive Income Statement d. Reported in Other Comprehensive Income on the Comprehensive Income Statement. 13. The change in the accumulated currency translation adjustment between year 1 and year 2 is a. Reported separately in the Consolidated Statement of Stockholders' Equity b. Included within the Retained Earnings figure in the Consolidated Statement of Stockholders' Equity c. Reported in the Net Income section of the Comprehensive Income Statement d. Reported in Other Comprehensive Income on the Comprehensive Income Statement

Answer 1