Concept explainers
(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.
Dividend: Dividend is the
The amount dividend received by P company from S company.
(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.
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)
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
(d)
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.
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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Chapter 12 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
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