1.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Translation: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
- The currency at which foreign entity will record transaction in its books.
- The functional currency of foreign entity.
- The process to restatement into U. S dollars.
2.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Translation: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
- The currency at which foreign entity will record transaction in its books.
- The functional currency of foreign entity.
- The process to restatement into U. S dollars.
3.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Translation: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
a. The currency at which foreign entity will record transaction in its books.
b. The functional currency of foreign entity.
c. The process to restatement into U. S dollars.
4.
Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.
Re-measurement: It is process to measure the financial results of any other currency into functional currency.
Translation: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.
d. The currency at which foreign entity will record transaction in its books.
e. The functional currency of foreign entity.
f. The process to restatement into U. S dollars.
Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
- General accounting questionarrow_forwardQuestion: Power Security Systems had sales of 3,000 units at $50 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 10 percent price increase. Returned merchandise will represent 6 percent of total sales. What is your net dollar sales projection for this year? Correct answerarrow_forwardHow much is the gross profit margin?? Financial accountingarrow_forward
- Michael Corporation has the following standards for its direct materials: 1. Standard Cost: $3.80 per pound 2. Standard Quantity: 6.00 pounds per product. During the most recent month, the company purchased and used 33,900 pounds of material in manufacturing 5,600 products, at a total cost of $131,900. Compute the materials quantity variance. Right answerarrow_forwardWhat is abc manufacturing net income general accounting question solutionarrow_forwardHow much is the cost of goods sold for the year ?arrow_forward
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning