We have a set of financial statements of a subsidiary and other information below. Income Statement...

 
 

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We have a set of financial statements of a subsidiary and other information below. Income Statement (from January 1, 2016 to December 31, 2016) Account Revenues Selling, General and Administrative Expenses (except depreciation) Depreciation Net Income Account Retained Earnings of Jan 1, 2016 Net Income Dividends Retained Earnings of Dec 31, 2016 Balance Sheet (as of December 31, 2016) Asset Cash Account Receivables Land Building Accumulated Depreciation Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Local Currency (LC) Total Account Payables Loan Common Stock Retained Earnings Total Table of Exchange Rates Liability and Equity When the company was established and bought Land and Building 2016/1/1 2016/12/31 Average exchange rate of 2016 Description Current Rate Method Temporal Method Net Income Information about beginning balance of Retained Earnings Local Currency (LC) Method Revenues Selling, General and Administrative Expenses (except depreciation) Depreciation Dividends Retained Earnings of Dec 31, 2016 Total Income Statement (from January 1, 2016 to December 31, 2016) Account USD Balance Sheet (as of December 31, 2016) Asset Cash Account Receivables Land Building Accumulated Depreciation Loan Local Currency (LC) Liability and Equity Account Payables Total Common Stock Retained Earnings Translation Adjustment 7,800,000 USD 4,200,000 Local Currency (LC) USD per LC 600,000 USD 3,000,000 Local Currency (LC) Q1. Translate the set of financial statements of local currency to the set of financial statements of USD by Current rate method below. USD 7,500,000 3,000,000 10,500,000 1,800,000 2,700,000 6,300,000 15,000,000 -3,000,000 22,800,000 Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Account USD Retained Earnings of Jan 1, 2016 Net Income 3,200,000 6,100,000 3,000,000 10,500,000 22,800,000 7,500,000 0 1.20 9,000,000 2,250,000 undisclosed 1.53 1.68 1.56 undisclosed undisclosed undisclosed undisclosed undisclosed undisclosed 1. If your company does international trading, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. Recognition of past service cost Translation of foreign currency International insurance 1. O 2. 3. 4. O Amount of profit 2. If your company does international trading, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Foreign exchange risk 2. Risk of default 3. Liquidity risk 4. O Human resource risk 3. If your company does a foreign direct investment, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Different method of job performance evaluation 2. Different accounting standard 3. Different method of managerial accounting Different culture 4. O 4. If your company does a foreign direct investment, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Liquidity risk 2. Risk of default 3. O 4. O 5. If your company has intercompany sales, what kind of issue related to international accounting there is? Double taxation Double counting of managerial accounting A multiple-choice question with one possible answer. Have to take care of operation regulations Have to take care of transfer pricing regulations Have to take care of logistics regulations Have to take care of insurance regulations 1. O 2. O 3. O 4.O 6. If your company does cross-listing, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Risks of default differ for foreign companies 2. 3. O 4. O Listing regulations differ for foreign companies Transfer regulations differ for foreign companies Amount of money raised differs for foreign companies We have a set of financial statements of a subsidiary and other information below. Income Statement (from January 1, 2016 to December 31, 2016) Account Revenues Selling, General and Administrative Expenses (except depreciation) Depreciation Net Income Account Retained Earnings of Jan 1, 2016 Net Income Dividends Retained Earnings of Dec 31, 2016 Balance Sheet (as of December 31, 2016) Asset Cash Account Receivables Land Building Accumulated Depreciation Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Local Currency (LC) Total Account Payables Loan Common Stock Retained Earnings Total Table of Exchange Rates Liability and Equity When the company was established and bought Land and Building 2016/1/1 2016/12/31 Average exchange rate of 2016 Description Current Rate Method Temporal Method Net Income Information about beginning balance of Retained Earnings Local Currency (LC) Method Revenues Selling, General and Administrative Expenses (except depreciation) Depreciation Dividends Retained Earnings of Dec 31, 2016 Total Income Statement (from January 1, 2016 to December 31, 2016) Account USD Balance Sheet (as of December 31, 2016) Asset Cash Account Receivables Land Building Accumulated Depreciation Loan Local Currency (LC) Liability and Equity Account Payables Total Common Stock Retained Earnings Translation Adjustment 7,800,000 USD 4,200,000 Local Currency (LC) USD per LC 600,000 USD 3,000,000 Local Currency (LC) Q1. Translate the set of financial statements of local currency to the set of financial statements of USD by Current rate method below. USD 7,500,000 3,000,000 10,500,000 1,800,000 2,700,000 6,300,000 15,000,000 -3,000,000 22,800,000 Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Account USD Retained Earnings of Jan 1, 2016 Net Income 3,200,000 6,100,000 3,000,000 10,500,000 22,800,000 7,500,000 0 1.20 9,000,000 2,250,000 undisclosed 1.53 1.68 1.56 undisclosed undisclosed undisclosed undisclosed undisclosed undisclosed 1. If your company does international trading, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. Recognition of past service cost Translation of foreign currency International insurance 1. O 2. 3. 4. O Amount of profit 2. If your company does international trading, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Foreign exchange risk 2. Risk of default 3. Liquidity risk 4. O Human resource risk 3. If your company does a foreign direct investment, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Different method of job performance evaluation 2. Different accounting standard 3. Different method of managerial accounting Different culture 4. O 4. If your company does a foreign direct investment, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Liquidity risk 2. Risk of default 3. O 4. O 5. If your company has intercompany sales, what kind of issue related to international accounting there is? Double taxation Double counting of managerial accounting A multiple-choice question with one possible answer. Have to take care of operation regulations Have to take care of transfer pricing regulations Have to take care of logistics regulations Have to take care of insurance regulations 1. O 2. O 3. O 4.O 6. If your company does cross-listing, what kind of issue related to international accounting there is? A multiple-choice question with one possible answer. 1. O Risks of default differ for foreign companies 2. 3. O 4. O Listing regulations differ for foreign companies Transfer regulations differ for foreign companies Amount of money raised differs for foreign companies

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Current Rate Method Translation of Subsidiary Financial Statements to USD Income Statement Account Local Currency LC USD Revenues 7800000 7800000 Selling General and Administrative Expenses except dep... View the full answer