Question: A U S company has a foreign sales branch located in
A U.S. company has a foreign sales branch located in Spain. The Spanish branch has selected the U.S. dollar for its functional currency. Describe the methodology for remeasuring the branch's financial statements into the U.S. company's reporting currency.
Answer to relevant QuestionsDiscuss the accounting treatment and disclosure of translation adjustments. When does the translation adjustment account have a debit balance? When does it have a credit balance?Describe the basic problem of eliminating intercompany transactions with a foreign affiliate.Many larger U.S. companies have significant investments in foreign operations. For example, McDonald's Corporation, the food service company, obtains 47 percent of its consolidated revenues and 44 percent of its operating ...Refer to the data in Exercise E12-5.Requireda. Prepare a proof of the translation adjustment computed in Exercise E12-5.b. Where is the translation adjustment reported on Popular Creek’s consolidated financial statements ...Hawk Company sold inventory to United Ltd., an English subsidiary. The goods cost Hawk $8,000 and were sold to United for $12,000 on November 27, payable in British pounds. The goods are still on hand at the end of the year ...
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