Calculate the cumulative translation adjustment for this U.S. MNC, translating the balance sheet and income statement of
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Question:
Calculate the cumulative translation adjustment for this U.S. MNC, translating the balance sheet and income statement of a French subsidiary, which keeps its books in euro, but that is translated into U.S. dollars using the current rate method, the reporting currency of the U.S. MNC. The subsidiary is at the end of its first year of operation. The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $1.50/€.
Please provide a formula or a break down on how you come up with the answer.
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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