AMEX Corporation is an American Multinational company with operations in Kuwait. The Kuwait subsidiary company supplied the
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AMEX Corporation is an American Multinational company with operations in Kuwait. The Kuwait subsidiary company supplied the following Annual report to the parent company in USA. The current rate is 1USD = 0.309607 KWD, historical rate is 1 USD= 0.30897 and average rate is I USD= 0.31099 KWD.
| ..Assets | Amount (KWD) | Liabilities | Amount (KWD) |
| Cash | 1,000 | Current Liabilities | 4,000 |
| Short term Investment | 1,000 | Capital | 10,000 |
| Accounts receivables | 2,000 | Borrowings | 6,000 |
| Inventory | 3,000 | Retained Earnings | 5,000 |
| Plant and Machinery | 9,000 | | |
| Computer | 3,000 | ||
| Total | 25,000 | Total | 25,000 |
You are required to
A. Determine the reporting currency using current rate method, current and non- current method and, monetary and non- monetary method.
B. Calculate the Net Exposed Assets by using Current/Non-Current Method and Temporal Method?
Expert Answer:
A Determination of reporting currency Current and noncurrent method i The current and prevailing exchange rate will be used to convert Current assets ... View the full answer
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ISBN: 978-0073530468
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Authors: Raymond A. Noe, John R. Hollenbeck, Barry Gerhart, Patrick M
Posted Date:
