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? Date AcquiredJan. 20212223242526272831TotalAssetCashAccounts ReceivableAccounts ReceivableInventoryInventoryEquipmentBuildingLandInvestment in Bonds at Amortized CostAmountIn USD1003002004003501,0005,0004,00050011,850Exchange Rate Initial Measurement(Peso to Dollar)In PHP50.4850.4250.3850.3350.3050.4150.4350.4650.4950.52P 5,04815,12610,07620,13217,60550,410252,150201,84025,245597,632

In the context of the given question, we are required to compute the total assets of the financial…

Date Acquired Jan. 21 22 23 24 222222222 25 26 27 28 20 31 Total Asset Cash Accounts Receivable Accounts Receivable Inventory Inventory Equipment Building Land Investment in Bonds at Amortized Cost Amount In USD 100 300 200 400 350 1,000 5,000 4,000 500 11,850 Exchange Rate Initial Measurement (Peso to Dollar) In PHP 50.48 50.42 50.38 50.33 50.30 50.41 50.43 50.46 50.49 50.52 P5,048 15,126 10,076 20,132 17,605 50,410 252,150 201,840 25,245 597,632

Date Acquired Jan. 21 22 23 24 222222222 25 26 27 28 20 31 Total Asset Cash Accounts Receivable Accounts Receivable Inventory Inventory Equipment Building Land Investment in Bonds at Amortized Cost Amount In USD 100 300 200 400 350 1,000 5,000 4,000 500 11,850 Exchange Rate Initial Measurement (Peso to Dollar) In PHP 50.48 50.42 50.38 50.33 50.30 50.41 50.43 50.46 50.49 50.52 P5,048 15,126 10,076 20,132 17,605 50,410 252,150 201,840 25,245 597,632

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Forex: Translation and Remeasurement
The 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?

Date Acquired
Jan. 20
21
22
23
24
25
26
27
28
31
Total
Asset
Cash
Accounts Receivable
Accounts Receivable
Inventory
Inventory
Equipment
Building
Land
Investment in Bonds at Amortized Cost
Amount
In USD
100
300
200
400
350
1,000
5,000
4,000
500
11,850
Exchange Rate Initial Measurement
(Peso to Dollar)
In PHP
50.48
50.42
50.38
50.33
50.30
50.41
50.43
50.46
50.49
50.52
P 5,048
15,126
10,076
20,132
17,605
50,410
252,150
201,840
25,245
597,632

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