a
Introduction: Translation adjustment is the method used to convert local currency into the parents' functional currency when the local currency of foreign business is its functional currency. The current rate is used to translate the financial statements that are the exchange rate on the
The subsidiary’s income statement ending in net income for the year.
b
Introduction: Translation adjustment is the method used to convert local currency into the parents' functional currency when the local currency of foreign business is its 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 it occurs uniformly over the period. Any gain or loss on account of translation adjustment is recognized in the comprehensive income statement.
The statement of comprehensive income for subsidiary.
c
Introduction: Translation adjustment is the method used to convert local currency into the parents' functional currency when the local currency of foreign business is its 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 it occurs uniformly over the period. Any gain or loss on account of translation adjustment is recognized in the comprehensive income statement.
The balance sheet for the year end related to subsidiary.
d
Introduction: Translation adjustment is the method used to convert local currency into the parents' functional currency when the local currency of foreign business is its 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 it occurs uniformly over the period. Any gain or loss on account of translation adjustment is recognized in the comprehensive income statement.
The major differences between the one statement format of the income statement and comprehensive income versus the two statement format of the income statement with a separate statement of comprehensive income.
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Chapter 12 Solutions
Advanced Financial Accounting
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