Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business. The objectives of translating a foreign subsidiary’s financial statements.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Translation exposure results when an MNC translates each subsidiary's financial data to its home currency for consolidated financial statements. Group of answer choices True False

Wahl Company’s 20X5 consolidated financial statements include two wholly owned subsidiaries, Wahl Company of Australia (Wahl A) and Wahl Company of France (Wahl F). Functional currencies are the U.S. dollar for Wahl A and the European euro for Wahl F. Required 1) What are the objectives of translating a foreign subsidiary’s financial statements? 2) How are gains and losses arising from the translation or remeasurement of each subsidiary’s financial statements measured and reported in Wahl’s consolidated financial statements? 3) What exchange rate is used to incorporate each subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in Wahl’s consolidated financial statements?

nee 1. If the foreign subsidiary of a US Corporation uses the currency of the region as its functional currency, which of the following methods would they use and where would gains and losses be reported? A. Remeasurement, Temporal method. Income statement. B. Translation, Current Rate method. Comprehensive income. C. Remeasurement, Temporal method. Comprehensive income. D. Translation, Current Rate method. Income statement 2. If the foreign subsidiary of a US Corp uses US currency as its functional currency, which of the following methods would they use? Where would gains and losses be presented? A. Translation, Current Rate method. Comprehensive Income B. Translation, Current Rate method. Income statement C. Remeasurement, Temporal method. Comprehensive income. D. Remeasurement, Temporal Method. Income Statement

Answer 2

Question

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Answer 6

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

Answer 7

Chapter 12, Problem 12.6C

a

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The objectives of translating a foreign subsidiary’s financial statements.

Answer 8

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

Answer 9

b

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The measurement of gains or losses arising from the translation or re-measurement of subsidiaries financial statements.

Answer 10

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

Answer 11

c

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The economic indicators to be considered in choosing functional currency for the consolidation of subsidiaries.

Answer 12

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Answer 13

d

To determine

Introduction: Restatement of foreign entity’s financial statements into U.S. dollars is done using either of the two available methods, (a) translation of foreign business functional currency into U.S. dollars and (b) re-measurement of the foreign business statements into functional currency. After re-measurement the statement is translated to functional currency of the business.

The exchange rate used to incorporate subsidiary’s equipment cost, accumulated depreciation, and depreciation expense in W’s consolidated financial statement.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 12 - Prob. 12.1Q Ch. 12 - Prob. 12.2Q Ch. 12 - Prob. 12.3Q Ch. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5Q Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains the two available methods of restatement of foreign entity's financial statements into U.S. dollars.

Want to see the full answer?

Chapter 12 Solutions