ADVANCED FIN. ACCT.(LL)-W/CONNECT
ADVANCED FIN. ACCT.(LL)-W/CONNECT
12th Edition
ISBN: 9781264582129
Author: Christensen
Publisher: MCG CUSTOM
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Chapter 12, Problem 12.30P
To determine

Introduction: Translation adjustment is the method used to convert the local currency into the parents' functional currency when the local currency is the foreign entity’s functional currency. The current rate is used to translate the financial statements that are the exchange rate on the balance sheet date. The average rate is used to translate revenue and expenses as it is assumed that occurs uniformly over the period. Any gain or loss on account of translation adjustment is recognized in the comprehensive income statement.

Preparation of a schedule translating the selected accounts into dollars as of December 31, 20X1 and 20X2. Assuming local currency unit is the foreign subsidiary’s functional currency.

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Chapter 12 Solutions

ADVANCED FIN. ACCT.(LL)-W/CONNECT

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