Solution-What is the translation adjustment to be

What is the translation adjustment to be recognized by abc

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Reference no: EM133178317

Question - ABC US Inc. is operating within US territory wherein the functional currency US $. However, the presentation currency of the said bank Philippine Peso. The following financial position data for the year 2022 are provided:

Assets, 12/31/2022	$1,000
Liabilities, 12/31/2022	200
Ordinary shares, 12/31/2022	300
Share premium, 12/31/2022	100
Retained earnings, 1/1/2022	200
2022 net income	300
Dividends declared, 12/1/2022	100

The following additional data are provided:

All ordinary shares are issued on January 1, 2015.

The translated amount of retained earnings at Philippine Peso on December 31, 2021 is P8,000.

The following direct exchange rates are determined:

1/1/2015	P45
12/31/2021	42
12/1/2022	41
12/31/2022	43
Average rate for 2022	44

Required -

1. What is the translation adjustment to be recognized by ABC US in its Statement of Comprehensive Income for the year ended December 31, 2022?

2. How much is the translated amount of total shareholders' equity, including the translation adjustment?

Reference no: EM133178317

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What is the translation adjustment to be recognized by abc

Reference no: EM133178317

Reference no: EM133178317

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