
(a)
Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.
Appropriate exchange rate for the given transaction.
(b)
Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.
The direct exchange rate for January 1, 20X4.
(c)
Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.
Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

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Chapter 12 Solutions
Advanced Financial Accounting
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