Concept of current rate method of translation

Assignment Help Financial Accounting
Reference no: EM13488818

Complete the following assignment. Submit your responses in MSWord as one document. Label each section clearly. If you choose to use an Excel spreadsheet for question 2, please copy and paste your spreadsheet into your Word document.  For written answers, please make sure your responses are well written, conforming to APA formatting, and have proper citations, if needed.

1) What is the concept of current rate method of translation and temporal method of translation? How does balance sheet exposure differ under these two methods?

2) The 2010 financial statement of Child Co. Inc (Mexico), a subsidiary of Parent Co. Inc (United States), reveals the following information:

Beginning Inventory 

Peso 100,000

Purchases     

Peso 500,000

Ending Inventory      

Peso 150,000

COGS   

Peso 450,000

US dollar exchange rate for 1 Peso:

 

January 1, 2010

$0.45

Average, 2010      

$0.42

December 31, 2010  

$0.38

The beginning inventory was acquired when the exchange rate was $0.50 last quarter of 2009; ending inventory was acquired when the exchange rate was $0.40 last quarter of 2010.

Report amounts of ending inventory and cost of goods sold to be included in the consolidated financial statements under (1) Current rate method and (2) Temporal method.

Reference no: EM13488818

Questions Cloud

Explain the monomers below to create one repeat : Kevlar is a strong synthetic fiber used in bullet proof vests and body armor. Kevlar is made by the condensation reaction between 1,4-phenylene-diamine and terephthaloyl chloride. Modify the monomers below to create one repeat unit of the polymer.
What is the firms present cash conversion cycle : As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle?
Determine the impedance at the resonant frequency : A 230-µF capacitor and a 40m H inductor are in series with a 345 O resistor. What is the impedance at the resonant frequency
Explain the mass of naoh his laboratory instructor dissolved : A student failed to standardize his NaOH solution with KHP. Instead, he calculated the NaOH solution concentration from the mass of NaOH his laboratory instructor dissolved to prepare the solution.
Concept of current rate method of translation : What is the concept of current rate method of translation and temporal method of translation and how does balance sheet exposure differ under these two methods?
Explain the bronsted-lowry base and the conjugate acid : For each of the following, identify the Bronsted-Lowry acid, the Bronsted-Lowry base, the conjugate acid, and the conjugate base.HNO3+H2O
Define idealised realms of philosophy : Should you give the person the money, or keep it for yourself? Is it more important to help other people who are in need, or to live one's life as fully as possible?
What is the weight of the heaviest brick : A very powerful vacuum cleaner has a hose 3.00 cm in diameter. With the end of the hose placed perpendicularly on the flat face of a brick, what is the weight of the heaviest brick
Estimate the orbital period of the satellite : An artificial satellite circles the Earth in a circular orbit at a location where the acceleration due to gravity is 7.28 m/s2. Determine the orbital period of the satellite

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd