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. Dividend: Dividend is the return on investment . It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary. The amount dividend received by P company from S company.

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Answer 1

Question

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 2

Question

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 3

Question

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 4

Question

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 5

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 6

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

Answer 7

Chapter 12, Problem 12.12E

(a)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

Answer 8

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

Answer 9

(b)

To determine

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.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

Answer 10

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

Answer 11

(c)

To determine

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.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

Answer 12

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

Answer 13

(d)

To determine

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.

Recording the amortization of trademark in P company’s book.

Answer 14

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 15

e.

To determine

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.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 12 - Prob. 12.1Q Ch. 12 - Prob. 12.2Q Ch. 12 - Prob. 12.3Q Ch. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5Q Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

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