(a)
Introduction:Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.
The
(b)
Introduction:Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.
Net gain on foreign currency transaction to be shown in income statement of M company as on December 31, 20X5.

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Chapter 11 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
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