a
Introduction: The reportable segment is the course of action used to decide which of the operating segments are separately reportable, a separately reportable segment requires separate supplemental disclosures, based on management’s arrangement of these operating segments for the purpose of internal evaluation of the entity’s financial position and operating performance.
The foreign operations must be reported separately or not
b
Introduction: The reportable segment is the course of action used to decide which of the operating segments are separately reportable, a separately reportable segment requires separate supplemental disclosures, based on management’s arrangement of these operating segments for the purpose of internal evaluation of the entity’s financial position and operating performance.
The foreign operations must be reported separately or not using materiality threshold
c
Introduction: The reportable segment is the course of action used to decide which of the operating segments are separately reportable, a separately reportable segment requires separate supplemental disclosures, based on management’s arrangement of these operating segments for the purpose of internal evaluation of the entity’s financial position and operating performance.
The information about the company’s domestic and foreign operations as required by ASC280
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Loose Leaf For Advanced Financial Accounting
- The following balance sheet accounts of a foreign subsidiary at December 31, 2011, have been translated into U.S. dollars as follows: Translated at Current Rates Historical Rates Accounts receivable, current $ 600,000 $ 660,000 Accounts receivable, long-term 300,000 324,000 Inventories carried at market 180,000 198,000 Goodwill 190,000 220,000 $1,270,000 $1.402,000 What total should be included in the translated balance sheet at December 31, 2011, for the above items? Assume the U.S. dotlar is the functional currency $1,300,000 $1.288.000 10:56 EN lenovoarrow_forwardCertain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Stated at Current Rates Historical Rates Accounts receivable, current $ 155,000 $ 175,000 Accounts receivable, long term 108,000 115,000 Land 54,000 59,000 Patents 83,000 88,000 $ 400,000 $ 437,000 This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?arrow_forwardA U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexicanpeso, MP) and one in Japan (local currency, yen, ¥). Forecasts of business operations indicate the following short-term financing position for each subsidiary (in equivalent U.S. dollars): Mexico:$80 million excess cash to be invested (lent) Japan: $60 million funds to be raised (borrowed) Currency Item US $ MP ¥ Spot exchange rates MP11.60/US$ ¥108.25/US$ Forecast percentage change −3.00% +1.50% Interest rates Nominal Euromarket 4.00% 6.20% 2.00% Domestic 3.75% 5.90% 2.15% Effective Euromarket Domestic Euromarket and the domestic market; then indicate where the funds should be invested and raised.…arrow_forward
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- On January 1, Narnevik Corporation formed a subsidiary in a foreign country. On April 1, the subsidiary purchased inventory on account at a cost of 250,000 local currency units (LCU). One-fifth of this inventory remained unsold on December 31, while 30 percent of the account payable had not yet been paid. The U.S. $ per LCU exchange rates were as follows:At what amounts should the December 31 balances in inventory and accounts payable be translated into U.S. dollars using the current rate method?arrow_forwardOn January 1, 20X1, Himalaya Corporation organized Alps Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 120,000. Alps's December 31, 20X1, trial balance in SFr is as follows: Debit (SFr) Credit(SFr) Cash 14000 Accounts Receivable 40000 Receivable from Himalaya 10000 Inventory 50000 Plant and Equipment 200000 Accumulated Depreciation 20000 Accounts Payable 24000 Bonds Payable 100000 Common Stock 120000 Sales 300000 Cost of goods sold 140000 Depreciation Expense 20000 Operating Expense 60000 Dividend paid 30000 Total SFr564,000 SFr 564,000 Additional Information The receivable from Himalaya is denominated in Swiss francs. Himalaya's books show a $8,000 payable to Alps. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased…arrow_forwardSantas Corporation is a diversified firm with operations in the United States, Canada, Chile, Spain, and France, each of which qualifies as a geographic segment. Data with respect to those segments follows: Segments: US Canada Chile Spain France Corporate-level Total Revenues (in thousands) Unaffiliated Intersegment Customers $ 1,600 900 1,200 560 600 $4,860 1.400 $6.260 Sales $0 300 120 200 $620 $620 Total $ 1,600 1,200 1,320 560 800 Profit (Loss) $400 300 480 (60) (220) $5,480 $900 1,400 200 $6.880 $ 1.100 Assets $ 600 400 700 360 180 $2,240 2,000 $4,240 Required: Determine which of the Santas segments would be reportable segments using the three criteria as stipulated under U.S. GAAP. Show your calculations. Note: Students must show all calculations under the three criteria to receive maximum points available. Space is provided below.arrow_forward
- On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 72,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows: Debit Credit Cash SFr 8,600 Accounts Receivable (net) 24,500 Receivable from Popular Creek 6,000 Inventory 26,000 Plant and Equipment 108,000 Accumulated Depreciation SFr 11,900 Accounts Payable 12,300 Bonds Payable 54,500 Common Stock 72,000 Sales 155,400 Cost of Goods Sold 73,500 Depreciation Expense 11,900 Operating Expense 31,000 Dividends Paid 16,600 Total SFr 306,100 SFr 306,100 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,800 payable to SunTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. Equipment is depreciated by the straight-line…arrow_forwarda) Mashimoto Electric is based in Osaka, Japan. Mashimoto Electric has a subsidiary inSingapore that generates SGD 50 million in annual sales. Any earnings generated by thesubsidiary are reinvested to support its operations. Benzai Electric is the close competitor ofMashimoto Electric. Benzai Electric is a local Japanese company located in Japan with 2 annual export sale to Singapore of about SGD 50 million. Based on the informationprovided, which firm is subject to a higher degree of translation exposure? Justify youranswer with thorough explanation on both companies.b) Diamond Limited, a New Zealand company has an Australian subsidiary that earnedAUD40 million this year. Little Limited, which is also resided in New Zealand has anAustralian subsidiary that earned AUD30 million this year. The subsidiary of DiamondLimited plans to reinvest its earnings in Australia while the subsidiary of Little Limitedplans to remit its earnings to the New Zealand parent. Another New Zealand…arrow_forwardSoley plc, a British company whose presentation currency is GBP, has a subsidiary, Westside Ltd, operating in the US. At the reporting date 31 December 20X3, Westside Ltd has 150 million USD of total assets. Exchange rate information as follows: On 31 December 20X3: 1 GBP = 1.2 USD Average rate for 20X3: 1 GBP = 1.25 USD What is Westside Ltd's total assets used for the purpose of preparing the Group's consolidated financial statements? a. 120 million GBP b. 180 million GBP c. 150 million USD d. 125 million GBP e. 187.5 million GBParrow_forward
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