Discuss why the Foreign Currency Translation Adjustment account was negative for GE in two of the three fiscal years. Are the changes in this account reported on the income statement or in the statement of cash flow for GE? Why or why not? Why are changes in a company’s “other comprehensive income” not subject to income taxation? Interpreting the Foreign Currency Translation Adjustment Account. The following information istaken from the annual report of General Electric Co.:Other Comprehensive Income (in millions)201820172016Foreign currency translation adjustment account...$(1,664) $2,178 $(1,298)Discuss why the Foreign Currency Translation Adjustment account was negative for GE in two of the three fis-cal years. Are the changes in this account reported on the income statement or in the statement of cash flow forGE? Why or why not? Why are changes in a company's "other comprehensive income" not subject to incometaxation?

Foreign Currency Translation Adjustment account is created when an entity is involved multiple…

Answered: Discuss why the Foreign Currency…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Discuss why the Foreign Currency Translation Adjustment account was negative for GE in two of the three fiscal years. Are the changes in this account reported on the income statement or in the statement of cash flow for GE? Why or why not? Why are changes in a company’s “other comprehensive income” not subject to income taxation?

Interpreting the Foreign Currency Translation Adjustment Account. The following information is
taken from the annual report of General Electric Co.:
Other Comprehensive Income (in millions)
2018
2017
2016
Foreign currency translation adjustment account...
$(1,664) $2,178 $(1,298)
Discuss why the Foreign Currency Translation Adjustment account was negative for GE in two of the three fis-
cal years. Are the changes in this account reported on the income statement or in the statement of cash flow for
GE? Why or why not? Why are changes in a company's "other comprehensive income" not subject to income
taxation?

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