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(a)
Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.
The re-measurement of cost of goods sold for the year 20X7 assuming U.S dollar is the functional currency.
(b)
Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Cost of goods sold: It the value of the goods which is sold during the year. It the basic cost of the goods without profit element. It is calculated by adding opening stock and purchases during the year and subtracting the result by closing stock.
The translation of cost of goods sold for 20X7 assuming euro as the functional currency.
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Chapter 12 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
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