Question: Using the original data provided for Bangkok Instruments, assume that the Thai baht appreciated in value from B30/$ to B25/$ between March 31 and April

Using the original data provided for Bangkok Instruments, assume that the Thai baht appreciated in value from B30/$ to B25/$ between March 31 and April 1. Assuming no change in balance sheet accounts between those two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Explain the translation gain or loss in terms of changes in the value of exposed accounts.

Step by Step Solution

★★★★★

3.40 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

TRANSLATION BY THE CURRENT RATE METHOD Balance Sheet thousands Before Devaluation After Devaluation Translated Translated Thai baht Exchange Rate Acco... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1170-B-B-F-C(650).xlsx

300 KBs Excel File

Students Have Also Explored These Related Banking Questions!

Doyle Beverages manufactures its own soda pop bottles. The bottles are made from poly-ethylene terephthalate (PET), a lightweight yet strong plastic. The company uses as much PET recycled resin...

Damon Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. The company uses as much PET recycled resin...

Dixson Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene terephthalate (PET), a lightweight yet strong plastic. Dixson uses as much PET recycled resin pellets in...

11.8 & 11.9 11.8 Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the...

11.9 please neatly written W lation e cur- es sheet into U.S. dollars are: B40.00/$ Exchange rates for translating Siam Toy's balance April 1st exchange rate after 25% devaluation. March 31st...

11.8 Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments...

Part A: Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures instruments...

please respond to the question 9 the original data is provided in question 8. (I do not need question 8 as I have previously submitted it) please respond with all calculations and explenations...

11.8 Bangkok Instruments, Lid. (A). Bangkok Instru- ments, Lid., the Thai subsidiary of a U.S. corpora- tion, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments...

Please answer 11.8 and 11.9. I could really use HELP ! 11.8 Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer....

How does management decide when to write off an account receivable or some other receivable? Is this an objective or subjective decision? Explain. How can management use its judgment to achieve its...

Mario Automobile Company leases automobiles under the following terms. A 3-year lease agreement is signed in which the lessor receives annual rental of $4,000 (in advance). At the end of the three...

why is it the client's decision to record adjustments to the financial statements

5.11 How Steep a Supply Curve? Consider two cities, one on a small island, and a second on a large plain. a. Draw a long-run supply curve for housing for each city, and explain any differences...

Contingent Currency Exposure. What are the largest contingent currency exposures that arise in the process of pursuing and executing a cross-border acquisition?

Currency Risks in Cross-Border Acquisitions. What are the currency risks that arise in the process of making a cross-border acquisition?

Three Stages of Cross-Border Acquisitions. What are the three stages of a cross-border acquisition? What are the core financial elements integral to each stage?

The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.245 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriters...

1. All of the following are major ERP vendors, except _____________. SAP Oracle Baan Salesforce.com JD Edwards 2. When the chief financial officer of a company wants a report on business units who...

Many Americans complain about being sleep deprived. A team of psychologists researched the reasons for this sleep deprivation. After determining that one reason was poor time management, they devised...