4. How much is the cumulative translation credit that should be presented in the statement of financial position on December 31, 2023? Group of answer choices a. 25,400 PHP b. 26,800 PHP c. 28,200 PHP d. 24,600 PHP 5. How much translation gain as component of other comprehensive income should be presented in the statement of comprehensive income for the year ended December 31, 2023? Group of answer choices a. 38,600 PHP b. 40,400 PHP c. 39,200 PHP d. 41,800 PHP
CASE 3. BS Corp owns majority of the outstanding ordinary shares of MM Corp, which is operating in the United States of America, where the functional currency is USD. However, the presentation currency of Saibangbasnsa is PHP, since this is the presentation currency of BS Corp. For the year ended December 31, 2023, MM Corp presented its Statement of Financial Position in its functional currency USD:
|
Current assets |
$10,000 |
Current liabilities |
$10,000 |
|
Noncurrent assets |
40,000 |
Noncurrent liabilities |
20,000 |
|
|
|
Ordinary share capital |
5,000 |
|
|
|
|
8,000 |
|
|
|
|
7,000 |
Additional information:
- The ordinary shares are issued on January 1, 2022, while the preference shares are issued on July 1, 2022
- MM Corp reported net income of 1,000 USD during 2023, and declared dividends in the amount of 200 USD on December 1, 2023
- The translated amount of retained earnings on December 31, 2022 is P300,000
The following direct exchange rates are provided:
|
January 1, 2022 |
P40 |
|
July 1, 2022 |
P42 |
|
December 31, 2022 |
P43 |
|
December 1, 2023 |
P41 |
|
December 31, 2023 |
P45 |
4. How much is the cumulative translation credit that should be presented in the statement of financial position on December 31, 2023?
5. How much translation gain as component of other comprehensive income should be presented in the statement of comprehensive income for the year ended December 31, 2023?
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