Explain two major issues related with translation of foreign currency financial statements.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

None

Can you solve this general accounting problem using accurate calculation methods?

Can you solve this financial accounting problem using accurate calculation methods?

Answer 2

Question

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Answer 6

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Answer 7

Chapter 8, Problem 1Q

To determine

Explain two major issues related with translation of foreign currency financial statements.

Answer 8

Expert Solution & Answer

Explanation of Solution

Two major issues related with translation of foreign currency financial statements are:

1) In each of the financial statement exchange rate need to be used for translating, the major issue is choosing the method. It is mainly related to exchange rate as which method to choose (historical, current period average or current period) for translating the balances of foreign currency.
2) In consolidated financial statements where to show or report the translation adjustments. It is mainly relate to know whether a translation adjustment is treated as loss or gain in income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 8 - Prob. 1Q Ch. 8 - What causes balance sheet (or translation)...Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Explain two major issues related with translation of foreign currency financial statements.

Explain two major issues related with translation of foreign currency financial statements.

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions