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

Describe historical cost and future costs, Q. Describe Historical cost and ...

Q. Describe Historical cost and future costs? Historical cost and future costs: another problem in the determine of cost of the capital arise on the accounts of the difference

Operating cycle, applicability of operating cycle in poultry

applicability of operating cycle in poultry

Exchange rate uncertainty affect firm exchange risk exposure, The exchange ...

The exchange rate uncertainty may not essentially mean that firms face exchange risk exposure. Describe why this may be the case. Answer:  A firm can comprise a natural hedging p

Explain riskiness of portfolios, Why does the riskiness of portfolios have ...

Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios should be looked at differently as comp

Preferred stock, Preferred Stock This is a category of capital stock th...

Preferred Stock This is a category of capital stock that will gives its holders preference  over common stockholders in the distribution  of earnings  or rights to the assets o

Answer to an exercise, dear, I found an exercise on the Internet which coul...

dear, I found an exercise on the Internet which could help me has better to understand the finance, but there were no answers. What is that you can help me has to solve it. I''m fr

Structure and participation of hedge funds, Structure and Participation of ...

Structure and Participation of Hedge Funds: The typical structure for a Hedge Fund is to facilitate the tax concerns of investors and fund managers. Basically, there are two or

What is corporate social responsibility, (a) The term "financial reporting"...

(a) The term "financial reporting" incorporates not only financial statements, but also includes other means of communicating financial and non-financial information. Financial rep

Historical look at the treasury yield curve, The minimum interest rate ...

The minimum interest rate which investors demand for non-treasury securities is represented by the yield offered on the treasury securities. This is why market particip

Mathematical property of median, Mathematical Property The sum of the d...

Mathematical Property The sum of the deviations of the items from median, ignoring signs, is the least. For example, the median of 6, 10, 14, 18 and 22 is 14. The deviations fr

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