Presentation method-foreing branches, Financial Accounting

Presentation method (formerly closing rate or net investment method)

Under this method, the branch operates with a lot of degree of autonomy from the head office. This position is reflected by the fact that there are fewer transactions taking place between the head office and the branch.

Any exchange gain or loss arising from translating the results of branch should be transferred to the foreign  exchange reserve.

NOTE: The functional currency method is normally used because in most cases the branch is an extension of the head office and the presentation method should only be used if the examiner requires so.

Posted Date: 12/12/2012 2:02:10 AM | Location : United States







Related Discussions:- Presentation method-foreing branches, Assignment Help, Ask Question on Presentation method-foreing branches, Get Answer, Expert's Help, Presentation method-foreing branches Discussions

Write discussion on Presentation method-foreing branches
Your posts are moderated
Related Questions
Morningside nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital.  Its tax-exempt debt currently requires an interest rate of 6.2 percent and its

Q. What is Depreciation Reserve Fund ? Depreciation Reserve Fund is the fund specially reserved for replacement of assets. Once the assets are purchased from the capital money

Q. Compute the present value? The offer for the manufacturing rights is for a ten-year period. Annual after-tax cash flow after Year 4 = $660000 Present value of this c

Regulated Investment Company (RIC) - Commonly known as a MUTUAL FUND, this is a domestic corporation which acts as an investment agent for its shareholders by typically investing i

Straight-Line Depreciation - ACCOUNTING method which reflects an equal amount of wear and tear during every period of an ASSET'S useful life. For example annual STRAIGHT-LINE DEPRE

History of trust The following general information should be kept with the trust documents: Summary of will or trust deed; Short history of the trust; Trustees’ nam

What is the function of bill receivable? What is the meaning of bill receivable?

Q. What is Credit Analysis? Potential credit customers must be carefully screened using such methods as bank references, trade references, credit reports from credit reference

EXPLIN THE PROCEDURE FOLLOWED IN GOVERMENT SYSTEM OF ACCOUNTING IN INDIA.

like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks?