According to the current rate method of translating foreign currency financial statements, Question 3 1 Answer A only owner's equity is translated at historical exchange rates B translation losses are taken to income, but translation gains are deferred C current assets and liabilities are translated at current exchange rates, and other assets, liabilities and owner's equity are translated at historical exchange rates D only those assets carried at past exchange prices should be translated at the historical rate

The Answer is in the image, click to view ...

Question: According to the current - rate method of translating foreign currency financial statements, Question 3 1 Answer A . only owner's equity is translated at

According to the current

-

rate method of translating foreign currency financial statements,

Question

31

Answer

.

only owner's equity is translated at historical exchange rates.

.

translation losses are taken to income, but translation gains are deferred.

.

current assets and liabilities are translated at current exchange rates, and other assets, liabilities and owner's equity are translated at historical exchange rates.

.

only those assets carried at past exchange prices should be translated at the historical rate.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Sunrise Swimwear manufactures ladies swimwear in January through June of each year that is sold through retail outlets in March through August. The following table summarizes the monthly production...

1. Which of the following methods for translating foreign currency financial statements attempts to produce consolidated financial statements as if a subsidiary had actually used the parent company's...

1. What is the primary role of internal auditing in a multinational corporation? A) To assist the external auditors in completing the financial statement audit in a timely fashion B) To make sure...

According to the current-rate method of translating foreign currency financial statements, O current assets and liabilities are translated at current exchange rates, and other assets, liabilities and...

1. Fay had a realized foreign exchange loss of $15,000 for the year ended December 31, 2011, and must also determine whether the following items will require year-end adjustment: Fay had an $8,000...

Question 1 In translating foreign financial statements (local currency is functional currency) into U.S. dollars, FASB Statement No. 133 requires the use of the: O current-noncurrent method O current...

On January 1, 2018, Matteo Josef Company established a subsidiary in a foreign country by investing FC 4,500,000 when the exchange rate was $0.70. Other key transactions include: January 4, 2018, a...

Advanced accounting multiple-choice ACCT 4020 Advanced Accounting Chapters 11 and 12 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question....

12) 12) On October 1 of the current year, a U.S. company sold merchandise on account to a British company for 2,000 pounds (exchange rate, 1 pound = $1.43). At the company's December 31 fiscal year...

2 1 - Which of the following items in the balance sheet is subject to accounting exposure? A . Only assets B . Only liabilities and owners' equity C . All accounts translated at historical exchange...

E 14-2 [Based on AICPA] Translation/remeasurement differences 1. When consolidated financial statements for a U.S.parent and its foreign subsidiary are prepared, the account bal- ances expressed in...

a.Using appropriate examples define precisely the following accounting concepts and for each explain their implication in the preparation of financial statements 1.historical cost concept...

One of your clients is considering electing S status. Texas, Inc., is a six year-old company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2015, Texas has a...

You should try to look at the audience about 5 0 percent of the time while you are giving a speech.Group of answer choicestruefalse

1.As part of a long-term study of individuals 65 years of age or older, sociologists and physicians at the Wentworth Medical Center in upstate New York investigated the relationship between...