Arte Fabrics Ltd. owns a subsidiary based in France. Requirements 1. Translate the foreign-currency balance sheet of

Question:

Arte Fabrics Ltd. owns a subsidiary based in France.
Requirements
1. Translate the foreign-currency of the French subsidiary of Arte Fabrics Ltd. into dollars. When Arte Fabrics acquired this subsidiary, the euro was worth $1.60. The current is $1.80 per euro. During the period when the subsidiary earned its income, the average was $1.70 per euro.
Euros
Assets .......................................................................................... 3,000,000
Liabilities ..................................................................................... 1,000,000
Shareholders' equity:
Common shares ....................................................................... 300,000
Retained earnings .................................................................... 1,700,000
3,000,000
Before you perform the foreign-currency translation calculation, indicate whether Arte Fabrics has experienced a positive or a negative foreign-currency translation adjustment. State whether the adjustment is a gain or a loss, and show where it is reported in the To which company does the translation adjustment "belong"? In which company's will the translation adjustment be reported?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...