An essential advantage of the ________ method of foreign currency translation is that foreign non-monetary assets...
An essential advantage of the ________ method of foreign currency translation is that foreign non-monetary assets are carried at their original cost in the parent's consolidated statement while the most important advantage of the ________ method is that the gain or loss from translation does not pass through the income statement.
Select one:
a. Temporal; current rate
b. Monetary; current rate
c. Temporal; monetary
d. Current rate; temporal
Homework Answers
Ans d. Current rate; temporal
An essential advantage of the Current rate method of foreign currency translation is that foreign non-monetary assets are carried at their original cost in the parent's consolidated statement while the most important advantage of the temporal method is that the gain or loss from translation does not pass through the income statement.
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An essential advantage of the ________ method of foreign
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Please solve for multiple choice in images. Question 19 5 pts Xena Corporation has a foreign...
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Please solve for multiple choice in images.
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You are an analyst reviewing the impact of three currency
translation methods (current / non- current, monetary /
non-monetary and temporal) on a Yen subsidiary operations of a
parent company with a Dollar home currency. The following
information has been gathered from company and market sources.
Excerpts of company financial information:
a.) Calculate the company’s financial information under each of
the three currency translation methods.
b.) Based on inventory turnover, return on equity and return on
assets, which currency translation...
a. In accordance with International Financial Reporting Standards (IFRS), which translation combination would be appropriate for a foreign operation whose functional currency is the currency of the host country (foreign currency)? Method Treatment of Translation Adjustment Temporal Separate component of stockholders' equity b. Temporal Gain or loss in income statement Current rate Separate component of stockholders' equity d. Current rate Gain or loss in income statement The functional currency of Garland Inc.'s Japanese subsidiary is the Japanese yen. Garland borrowed...
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