Discuss the translation process that will occur

Assignment Help Financial Accounting
Reference no: EM132953667

CASE STUDY

In relation to the following case situation, discuss the choice of a functional currency. A Korean operation is a wholly-owned subsidiary of an Australian company which regards the operation as a long-term investment, and thus takes no part in the day today decision making of the operation. The operation purchases parts from various non-related Australian manufacturers for assembly by Korean labor. The finished product is exported to a number of countries but Australia is the major market. Consequently, sales prices are determined by competition within Australia Case Study 2 In its 2016 annual report, Wesfarmers notes that the functional currency and presentation currency of Wesfarmers Ltd and its Australian subsidiaries are the Australian dollar. In Note 19 it lists its overseas subsidiaries. These include Bunnings (NZ) Ltd for which the functional currency is the New Zealand dollar (NZD), and Auridam Botswana (Proprietary) Ltd for which the functional currency is the Pula (BWP).

Required

Problem 1: Discuss the translation process that will occur so that these subsidiaries can be included in the consolidated financial statements of Wesfarmers Ltd.

Reference no: EM132953667

Questions Cloud

What is the payback period : The cost savings from the equipment would result in an annual increase in net income after tax of $167,000. What is the payback period
Steeper indifference curve for the utility function : Answer whether you agree to each of the following statements and explain your argument.
How many units were produced : Cooper Company purchased and used 6,600 gallons, paying $46,700. The direct materials quantity variance was $1,260 unfavorable. How many units were produced
Should be investing in the ipo at the onset : Should you be investing in the IPO at the onset, later, or not at all? Why? Justify your response. Discuss the timing and initial returns of IPO's.
Discuss the translation process that will occur : Discuss the translation process that will occur so that these subsidiaries can be included in the consolidated financial statements of Wesfarmers Ltd.
What is the purpose of translating financial statements : What is the purpose of translating financial statements from one currency to another? What is meant by 'functional currency'? What is meant by 'presentation'
Make the necessary journal entries to correct transactions : Prepare the necessary journal entries to correct the above transactions as of December 31 2021 assuming the books are still open.
Discuss a different perspective on the topic : Post an opinion based on reading/research you did on the topic of the thread.
What is the dividend yield and capital gains yield : Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $3.80 per share. Stocks W, X, and Y are expected

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find the annualized interest cost

Suppose a firm is offered the following the terms are 1.5/8 net 30. Find the annualized interest cost

  Create the entry on december to adjust for medical supplies

Create the entry on December 31 to adjust for the medical supplies on hand. Post the entry. Determine the adjusted balances to be presented

  How much is the gain on exchange to be recognize

Based on the above, answer the following: How much is the gain (loss) on exchange to be recognize in 2018? What the journal entry on March 31

  Determine how many customers you would need to break even

You are in charge of running a paintball field. Customers are charged a $35 entrance fee and $45 per case of paint, on average they buy a total of 2 cases. Determine how many customers you would need to break even? What is your total profit?

  How much is the depletion charge

How much is the depletion charge in 2020? In 2019, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold.

  Explain what salary should start at to reach goal

Explain what salary should he start at to reach his goal? If Edward wants to earn $215,000 within the next 20 years and the salaries grow at 4.15% per year

  Net operating income under variable costing

higher than the net operating income under variable costing-lower than the net operating income under variable costing.

  Whatannual total inventory management cost of book inventory

What is the annual total inventory management cost of book inventory? Books Depot, a large retailer of books, orders 7,212,857 books per year

  Determine the firms weighted average cost of capital

The Simpson corp. is planning construction of a new plant. the initial cost of the investment is $5 million. effecieinxes from the new plant are expected to reduce cost by $620,000 forever (perpetual). the corporation has a total value of $400 millio..

  What are the direct and indirect costs of an IPO

The proposed expansion would require the firm to raise about $18.3 million in new capital. What are the direct and indirect costs of an IPO

  The overhead for the year was

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $104,720 and 3,400 estimated direct labor-..

  Evaluate the value of its ending inventory

Kirk Limited is trying to determine the value of its ending inventory as of February 28, 2012, the company"s year-end. The accountant counted everything that was in the warehouse, as of February 28, which resulted in an ending inventory valuation ..

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