Question: The comparative year end SFPs for Hilary Co were as

The comparative year- end SFPs for Hilary Co. were as follows:

Shares were issued when the exchange rate was $ 0.64.
The land was purchased at the end of 20X3. The bonds were issued at the end of 20X1, and mature at the end of 20X7. The exchange rate at the end of 20X1 was $ 0.74. Dividends are declared and paid at the end of each year. The retained earnings at the end of 20X2 were earned at an average rate of $ 0.79.

1. Translate the 20X2 and 20X3 SFPs, using the current- rate method. (Note that each year’s SFP is translated at the current rate at that year’s SFP date.)
2. Translate the 20X2 and 20X3 SFPs, using the temporal method.
3. Calculate the translation gain or loss for 20X3, under each translation method. P9-13

View Solution:

Sale on SolutionInn
  • CreatedMarch 13, 2015
  • Files Included
Post your question