Advanced Accounting 14th Edition
14th Edition
ISBN: 9781260726442
Author: By Joe Ben Hoyle And Thomas Schaefer And Timothy Doupnik
Publisher: Mc Grawhill Education
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Question
Chapter 10, Problem 17P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Students have asked these similar questions
Exchange differences arising from the translation of financial statements
of a foreign operation shall be accounted for as: (using the temporal
method)
Translation gain or loss as component of other comprehensive income
Translation gain or loss as component of profit or loss
As valuation adjustment on the company's retained earnings
Netted to the balance of foreign exchange gain or loss
The translation (remeasurement) adjustment reported in a translation when the functional currency is not the foreign currency is included
a.
as a separate component of other comprehensive income
b.
in the current liability section of the balance sheet as deferred revenue
c.
in the calculation of net income
d.
none of the above
Profit on exchange differences, arising on transaction of foreign operations are classified as:
a.
Operating income
b.
Other comprehensive income
c.
Investment income
d.
Interest income
Chapter 10 Solutions
Advanced Accounting 14th Edition
Knowledge Booster
Similar questions
- Which of the following statements is true for the translation process using the current rate method? Choose the correct.a. A translation adjustment can affect consolidated net income.b. Equipment is translated at the historical exchange rate in effect at the date of its purchase.c. A translation adjustment is created by the change in the relative value of a subsidiary’s monetary assets and monetary liabilities caused by exchange rate fluctuations.d. A translation adjustment is created by the change in the relative value of a subsidiary’s net assets caused by exchange rate fluctuations.arrow_forwardTRUE OR FALSE?In computing for the comprehensive income, the translation loss on foreign operation will be deducted from the net income.arrow_forwardThe components of other comprehensive income include:a. Changes in revaluation surplusb. Remeasurements of defined benefit plansc. Gains and losses arising from translating the financial statements of a foreign operationd. All of thesearrow_forward
- Which of the following statements is true for the translation process using the current rate method?a. A translation adjustment can affect consolidated net income.b. Equipment is translated at the historical exchange rate in effect at the date of its purchase.c. A translation adjustment is created by the change in the relative value of a subsidiary’s monetary assets and monetary liabilities caused by exchange rate fluctuations.d. A translation adjustment is created by the change in the relative value of a subsidiary’s net assets caused by exchange rate fluctuations.arrow_forwardWhich of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costsarrow_forwardThe system of using a monetary unit, such as the US dollar, to value the transaction is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionarrow_forward
- Determine the impact that specific differences between IFRS and U.S. GAAP have on financial statements, and prepare adjustments to convert IFRS balances to U.S. GAAP.arrow_forwardExchange differences in translating financial statements are recognized in profit or loss, while monetary and non-monetary exchange differences are reflected in OCI. TRUE OR FALSEarrow_forwardExplain revenue recognition concepts under the US GAAP rulearrow_forward
- Other comprehensive income includes all of the following, except: unrealized gains on available for sale financial asset. loss from translating the financial statements of a foreign operations. actuarial gain on defined benefit plan that is fully recognized. share premiumarrow_forwardGains from remeasuring a foreign subsidiary's financial statements from the local currency, which is not the functional currency, into the parent company's currency should be reported as a : O a. part of continuing operations O b. other comprehensive income item O c. deferred credit O d. extraordinary item (net of tax)arrow_forwardThe system of using a monetary unit, such as the US dollar, to value the transaction is known aswhich of the following?A. separate entity conceptB. monetary measurement conceptC. going concern assumptionD. time period assumptionarrow_forward
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