a.
Identify the location(s) in the annual report that provides disclosures related to foreign currency translation and foreign currency hedging.
b.
Determine whether the company’s foreign operations have a predominant functional currency.
c.
Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. Compare the relative magnitude of these translation adjustments for the two companies.
d.
Determine whether each company hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used.
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Loose Leaf for Fundamentals of Advanced Accounting
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