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

I don't need ai answer general accounting question

Please provide the accurate answer to this financial accounting problem using appropriate methods.

Step by step.....?

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.