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On December 31, 2008 a foreign subsidiary in US submitted the following balances stated in foreign currency: In US$ Total Assets 140,000 Total Liabilities 28,000 Ordinary Share 70,000 Retained Earnings 42,000   Relevant exchange rates are: current rate – P8.75; historical rate – P8.10; weighted average rate – P8.50. Assuming that the retained earnings of the subsidiary in December 31, 2008 translated to the peso is P290,000.   What amount of cumulative translation adjustment is to be reported in the consolidated balance sh

On December 31, 2008 a foreign subsidiary in US submitted the following balances stated in foreign currency: In US$ Total Assets 140,000 Total Liabilities 28,000 Ordinary Share 70,000 Retained Earnings 42,000   Relevant exchange rates are: current rate – P8.75; historical rate – P8.10; weighted average rate – P8.50. Assuming that the retained earnings of the subsidiary in December 31, 2008 translated to the peso is P290,000.   What amount of cumulative translation adjustment is to be reported in the consolidated balance sh

FINANCIAL ACCOUNTING
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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On December 31, 2008 a foreign subsidiary in US submitted the following balances stated in foreign currency:
In US$

Total Assets

140,000

Total Liabilities

28,000

Ordinary Share

70,000

Retained Earnings

42,000

 

Relevant exchange rates are: current rate – P8.75; historical rate – P8.10; weighted average rate – P8.50. Assuming that the retained earnings of the subsidiary in December 31, 2008 translated to the peso is P290,000.

 

What amount of cumulative translation adjustment is to be reported in the consolidated balance sheet on December 31, 2008?

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