ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 12, Problem 12.26P
a
To determine
Introduction: Re-measurement is redrafting the financial statements of the foreign entities from the local currency to its functional currency. Re-measurement is required only when the functional currency is different from the local currency that is used to maintain books of accounts.
The schedule of re-measurement for December 31, 20X3
b
To determine
Introduction: Re-measurement is redrafting the financial statements of the foreign entities from the local currency to its functional currency. Re-measurement is required only when the functional currency is different from the local currency that is used to maintain books of accounts.
The proof of re-measurement gain or loss when the net monetary liability position on January 1, 20X3, was A$80,000
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When the functional currency is identified as the U.S. dollar, land purchased by a foreign subsidiary after
the controlling interest was acquired by the parent company should be translated using the:
a.
forward rate
b.
current rate in effect at the balance sheet date
historical rate in effect when the land was purchased
C.
d.
average exchange rate for the current period
Required:
a. Prepare a schedule translating the December 31 20X1, trial balance from swiss francs to dollar.
b. Where is the translation adjustment reported on popular Creek's consolidated financial Statement and its foreign Sibsidiary?
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On
December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):
Cash
Inventory
Land
Building
Accumulated depreciation
2020
Feb. 1 Paid 8,120,000 NGN on the note payable.
May 1 Sold entire inventory for 17,200,000 NGN on account.
June 1 Sold land for 6,120,000 NGN cash.
2011
2013
NGN 16,420
11, 200
4, 120
41,200
(20,600)
NGN 52,340
The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common
stock in 2011. During 2020, the following transactions took place:
Aug. 1 Collected all accounts receivable.
Sept. 1 Signed long-term note to receive 8,120,000 NGN cash.
Oct. 1 Bought inventory for 20, 120,000 NGN cash.
Nov. 1 Bought land for 3,120,000 NGN on account.
Dec. 1 Declared and paid 3,120,000 NGN cash dividend to parent.
Dec.31 Recorded depreciation for the entire year of 2,060,000 NGN.…
Chapter 12 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
Ch. 12 - Prob. 12.1QCh. 12 - Prob. 12.2QCh. 12 - Prob. 12.3QCh. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5QCh. 12 - Prob. 12.6QCh. 12 - Prob. 12.7QCh. 12 - Prob. 12.8QCh. 12 - Prob. 12.9QCh. 12 - Prob. 12.10Q
Ch. 12 - Prob. 12.11QCh. 12 - Prob. 12.12QCh. 12 - Prob. 12.13QCh. 12 - Prob. 12.14QCh. 12 - Prob. 12.15QCh. 12 - Prob. 12.16QCh. 12 - Prob. 12.17QCh. 12 - Prob. 12.18QCh. 12 - Prob. 12.19QCh. 12 - Prob. 12.20QCh. 12 - Prob. 12.4CCh. 12 - Prob. 12.5CCh. 12 - Prob. 12.6CCh. 12 - Prob. 12.7CCh. 12 - Prob. 12.1.1ECh. 12 - Prob. 12.1.2ECh. 12 - Prob. 12.1.3ECh. 12 - Prob. 12.1.4ECh. 12 - Prob. 12.1.5ECh. 12 - Prob. 12.1.6ECh. 12 - Prob. 12.1.7ECh. 12 - Prob. 12.2.1ECh. 12 - Prob. 12.2.2ECh. 12 - Prob. 12.2.3ECh. 12 - Prob. 12.2.4ECh. 12 - Prob. 12.2.5ECh. 12 - Prob. 12.2.6ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4.1ECh. 12 - Prob. 12.4.2ECh. 12 - Prob. 12.4.3ECh. 12 - Prob. 12.4.4ECh. 12 - Prob. 12.4.5ECh. 12 - Prob. 12.4.6ECh. 12 - Prob. 12.4.7ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Prob. 12.8ECh. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.12ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Prob. 12.15ECh. 12 - Prob. 12.16PCh. 12 - Prob. 12.17PCh. 12 - Prob. 12.18PCh. 12 - Prob. 12.19PCh. 12 - Remeasurement Gain or Loss Refer to the...Ch. 12 - Prob. 12.21PCh. 12 - Remeasurement and Proof of Remeasurement Gain or...Ch. 12 - Translation Palermo Inc. purchased 80 percent of...Ch. 12 - Prob. 12.24PCh. 12 - Prob. 12.25PCh. 12 - Prob. 12.26PCh. 12 - Prob. 12.27PCh. 12 - Prob. 12.28PCh. 12 - Prob. 12.29PCh. 12 - Prob. 12.30PCh. 12 - Prob. 12.31PCh. 12 - Prob. 12.32PCh. 12 - Prob. 12.33P
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