International Accounting
5th Edition
ISBN: 9781259747984
Author: Doupnik, Timothy S., Finn, Mark T., Gotti, Giorgio
Publisher: Mcgraw-hill Education,
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Question
Chapter 7, Problem 22EP
a.
To determine
Prepare translated financial statements of subsidiary as per International Financial Reporting Standards (IFRS).
b.
To determine
Prepare translated financial statements of subsidiary as per Generally Accepted Accounting Principles (GAAP).
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Students have asked these similar questions
The controller of Pane Co. was preparing the company's financial statements. Pane had a
wholly owned subsidiary in a foreign country that used the euro as its currency. At December
31, the exchange rate was $1 U.S. for 1.25 euro. The weighted-average exchange rate for the
year was $1 U.S. for 1.50 euro. At December 31, the subsidiary had assets of 1 million euro and
revenue for the year of 2 million euro. What amounts would assets and revenue translate for
consolidation?
Assets Revenue
A. $666,666 $1,333,333
B. $666,666 $1,600,000
C. $800,000 $1,333,333
D. $800,000 $1,600,000
Assuming that the functional currency of a foreign subsidiary is the local currency, which of the following accounts would be translated at the current rate on the Balance Sheet date (B/S Rate)?
a.Additional Paid-In Capital
b.Cost of Goods Sold
c.Retained Earnings
d.Allowance for Doubtful Accounts
Problems 6 and 7 are based on the following information.Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items?a. $430,000.b. $435,000.c. $440,000.d. $450,000.
Chapter 7 Solutions
International Accounting
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - 6. What are the major differences between IFRS and...Ch. 7 - Prob. 7QCh. 7 - 8. Which translation method does U.S. GAAP require...Ch. 7 - Prob. 9QCh. 7 - 10. How are gains and losses on foreign currency...
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 1EPCh. 7 - Prob. 2EPCh. 7 - Prob. 3EPCh. 7 - Prob. 4EPCh. 7 - 4. Which of the following best explains how a...Ch. 7 - In the translated financial statements, which...Ch. 7 - Prob. 7EPCh. 7 - Prob. 8EPCh. 7 - Prob. 9EPCh. 7 - Prob. 10EPCh. 7 - The Year 1 financial statements of the Chinese...Ch. 7 -
10. Simga Company's Turkish subsidiary repented...Ch. 7 - Prob. 13EPCh. 7 - Prob. 14EPCh. 7 - Prob. 15EPCh. 7 - Prob. 16EPCh. 7 - Prob. 17EPCh. 7 - Prob. 18EPCh. 7 - 16. Access the most recent annual report for a...Ch. 7 - Prob. 21EPCh. 7 - Prob. 22EPCh. 7 - Prob. 1CCh. 7 - Prob. 2C
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