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.

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Answer 1

Question

Chapter 12, Problem 12.32P

(a)

To determine

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)

To determine

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)

To determine

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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Which translation method results in a set of financial statements as if the foreign subsidiary’s transactions were carried out in US dollars? Current rate method Temporal method

In accordance with U.S. generally accepted accounting principles, which translation combination is appropriate for a foreign operation whose functional currency is the U.S. dollar? Choose the correct option. Method Treatmemt of transition adjustment a. Current rate other comprehensive income b. Current rate Gain or loss in net income c. Temporal other comprehensive income d. Temporal Gain or loss in net income

In accordance with U.S. generally accepted accounting principles, which translation combination is appropriate for a foreign operation whose functional currency is the U.S. dollar?

Answer 2

Question

Chapter 12, Problem 12.32P

(a)

To determine

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)

To determine

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)

To determine

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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Answer 3

Question

Chapter 12, Problem 12.32P

(a)

To determine

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)

To determine

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)

To determine

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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Answer 4

Question

Chapter 12, Problem 12.32P

(a)

To determine

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)

To determine

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)

To determine

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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Answer 5

Chapter 12, Problem 12.32P

(a)

To determine

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)

To determine

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)

To determine

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.

Answer 6

Chapter 12, Problem 12.32P

(a)

To determine

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.

Answer 7

Chapter 12, Problem 12.32P

(a)

To determine

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.

Answer 8

(b)

To determine

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.

Answer 9

(b)

To determine

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.

Answer 10

(c)

To determine

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.

Answer 11

(c)

To determine

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.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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 the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

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Chapter 12 Solutions