Explain translation gain and losses handled in different way, Financial Management

Assignment Help:

How are translation gains and losses handled in a different way as per to the current rate method in comparison to the other three techniques, which is the current/noncurrent method, the monetary/nonmonetary technique, and the temporal technique?

Answer:  Within the current rate method, translation losses and gains are handled just as an adjustment to net worth by an equity account named the “cumulative translation adjustment” account.  Not anything passes throughout the income statement. The another three translation methods pass foreign exchange gains or losses by the income statement before they enter on to the balance sheet by the accumulated retained earnings account.


Related Discussions:- Explain translation gain and losses handled in different way

Feasibility of the project, From a practical point of view, the feasibility...

From a practical point of view, the feasibility of the project for Maribyrnong Council can be divided into three elements which are: logistical, operational and legal issues. First

Why is the replacement value of assets method, Why is the replacement value...

Why is the replacement value of assets method not generally used to value complete businesses? The replacement value of assets method isn't often applied to entire business val

Do you agree or disagree with this statement, Companies with rapidly growin...

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm.  Do you agree or disagree with this statement?  Explain. Disagree

Criticize the flexible exchange rate regime, Criticism from the viewpoint o...

Criticism from the viewpoint of the proponents of the flexible exchange rate regime. Economic agents can hedge exchange risk through forward contracts and other methods. They do

Valuation, Valuation The process of finding out the current value of an...

Valuation The process of finding out the current value of an asset or company is known as valuation. There are various techniques that can be utilized to find value, few are su

Evaluate the revenue and cost, a) TFC = $1,840 (Rent, Salaries, Admin + Pow...

a) TFC = $1,840 (Rent, Salaries, Admin + Power) (b) BEQ = $1,840 / $16 = 115 child places (c) Graph: Title; Axis labels; TR line; TC line and TFC line accurately drawn and la

Determine the fields of finance, Determine the Fields of Finance Academ...

Determine the Fields of Finance Academic discipline of financial management may be viewed as made up of five specialized fields. In every field, financial manager is dealing wi

Role of Trustee in Pension Fund, Role of Trustee in Pension Fund: Trust...

Role of Trustee in Pension Fund: Trustees are people in control of long-term asset allocation of a pension scheme. Whatever benchmark they set will, as we shall see, influence

Default risk, Default risk is the risk that arises when the iss...

Default risk is the risk that arises when the issuer is not able to satisfy the terms and conditions of the obligation with respect to timely pa

Agency mortgage-backed securities, Agency Mortgage-Backed Securities ...

Agency Mortgage-Backed Securities (AMBS) are securities that are backed by the mortgage loans. These securities include mortgage passthrough securities, stripped

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