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

Advantages and the disadvantages of a new stock issue, What are the advanta...

What are the advantages and the disadvantages of a new stock issue? A new stock issue increases funds and decreases the riskiness of the firm.  It as well tends to send a negat

Example on bills of exchange, Q. Example on Bills of exchange? ARG Co w...

Q. Example on Bills of exchange? ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar

Leverage, What is the importance of leverage in business management of a sm...

What is the importance of leverage in business management of a small scale company

Criticism of walter’s model, (i) No External Financing: - Walter' model pre...

(i) No External Financing: - Walter' model presume that the firm's investment are financed exclusively by retained earnings and no external financing is used. If it was therefore t

How do financial managers calculate the average tax rate, How do financial ...

How do financial managers calculate the average tax rate? Financial managers calculate the average tax rate by dividing tax dollars paid by earnings before taxes (EBT).

How to calculate payment of expenses, How to calculate payment of expenses:...

How to calculate payment of expenses: SAIB, LLC is a US company that provides cell phone and internet service; it seeks to expand its international operations into Kyrgyzstan.

Return payment method, when asked to calculate return method given cash flo...

when asked to calculate return method given cash flow before depreciation how do you do it

Ledgers, Ledgers: Ledgers record all the entries into the Cash Books. T...

Ledgers: Ledgers record all the entries into the Cash Books. They use the concept of 'double entry' bookkeeping where every ledger entry must be accompanied by another ledger e

Cost centre, a)   What are the pre-requisites of installation of responsibi...

a)   What are the pre-requisites of installation of responsibility accounting system? b)  Diffrence between 'cost centre' and 'profit centre'.

What was the value of each person investment, Joe and Sam each invested $20...

Joe and Sam each invested $20,000 in the stock market. Joe's investment increased in value by 5% per year for 10 years. Sam's investment decreased in value by 5% for 5 years and th

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