ADVANCED ACCOUNTING
14th Edition
ISBN: 9781307664089
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 10, Problem 5P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Which 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 costs
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.
Please explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. intangibles, biological assets, goodwill, non-controlling assets).
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- Exchange differences arising from the translation of financial statements of a foreign operation shall be accounted for as: (using the closing rate method 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 O Netted to the balance of foreign exchange gain or lossarrow_forwardWhich of the following statements about IFRS and U.S. GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP allow the use of title “balance sheet” or “statement of financial position.” b. One difference between the reporting requirements under IFRS and those of U.S. GAAP balance sheet is that an IFRS balance sheet may list long-term assets first. c. Both IFRS and U.S. GAAP require that comparative information be reported. d. Both IFRS and U.S. GAAP require that property, plant and equipment be revalued on the balance sheet.arrow_forwardWhich 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_forward
- How is property, plant, and equipment measured on the balance sheet under IFRS? How does this differ from the way property, plant, and equipment is measured on the balance sheet under U.S. GAAP?arrow_forwardExchange 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 lossarrow_forwardWhich of the following refers to the current rate used for the purpose of translations? O a. The current rate at the time of transaction O b. The spot rate O. The rate prevailing on the date of preparation of the consolidated balance sheet O d. The rate prevailing on the date of the balance sheetarrow_forward
- Forex: Translation and RemeasurementThe following assets are held by a subsidiary in a foreign country: 1. At what amount should be reported as total assets if the financial statement is to be translated as of Jan. 31?2. At what amount should be reported as total assets if the financial statement is to be remeasured as of Jan. 31?arrow_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_forwardSettlement period for trade payables Inventories turnover periodarrow_forward
- The financial statements of an entity that reports in the currency of a hyperinflationary economy shall be stated in terms of: a. Historical cost b. Current cost c. Fair value d. Measuring unit current at the end of reporting periodarrow_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_forwardAnalyze the impact of differences between IFRS and U.S. GAAP in asset recognition and measurement rules on financial statements. You may focus on Inventories; PPE; Investment Property; Biological Assets; Impairment of Assets; Intangible Assets; Business combination and consolidated financial statements; and Borrowing costs.arrow_forward
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