Explain some examples under fasb 52, Financial Management

Assignment Help:

Explain some Examples under FASB 52 that a foreign entity's functional currency would be similar as the parent firm's currency.

Answer:  Three instances under FASB 52, in which the foreign entity's functional currency will be similar as the parent firm's currency, are:

a) The foreign entity's cash flows directly influence the parent's cash flows and are readily available for remittance to the parent firm;

b) The sales prices for the foreign entity's products are approachable on a short-term basis to exchange rate changes in which sales prices are defined through worldwide competition; and,

c) The sales market is mainly located in the parent's country or sales contracts are denominated in the parent's currency.


Related Discussions:- Explain some examples under fasb 52

Stock valuation, Investors require an 11% return on a preferred stock that ...

Investors require an 11% return on a preferred stock that pays a $2.30 annual dividend.  What is the price

Bond indexation, Bond indexation serves the purpose of replicating th...

Bond indexation serves the purpose of replicating the performance of a predetermined benchmark as closely as possible. These benchmarks are generally very broader

Explain the basis risk, Explain the Basis Risk Basis risk considers to ...

Explain the Basis Risk Basis risk considers to the floating rates of two counterparties being pegged to two dissimilar indices.  In this situation, as the indexes are not compl

Determine the earnings per share, Goodshape Company has currently, an ordin...

Goodshape Company has currently, an ordinary share capital of Rs. 2.5 million, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 2 milli

Operating cycle, operating cycle of a vegetable growing business

operating cycle of a vegetable growing business

Internal rate of return, Internal Rate of Retur n The discount ...

Internal Rate of Retur n The discount rate at which the net current value (the value of all future cash flows, in excess of the real investment, expressed  in today's d

Liquidity mix, I am facing some problems in my assignment of Liquidity Mix....

I am facing some problems in my assignment of Liquidity Mix. Can anybody suggest me the proper explanation for it?

Sensitivity analysis, A division of Saron plc is considering introducing a ...

A division of Saron plc is considering introducing a new product.  The product is the result of work undertaken by the division's research and development department - the expendit

Financial Managemente.., Madhuban group manufactures a product. The followi...

Madhuban group manufactures a product. The following particulars are as follows: 5 Monthly demand 1000 units Cost of placing an order Rs. 100 Annual carrying cost per unit Rs. 15 N

Write Your Message!

Captcha
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