1 what is the concept of current rate method of translation

Assignment Help Accounting Basics

Reference no: EM13379719

1) What is the concept of current rate method of translation and temporal method of translation? How does balance sheet exposure differ under these two methods?

2) The 2010 financial statement of Child Co. Inc (Mexico), a subsidiary of Parent Co. Inc (United States), reveals the following information:

Beginning Inventory	Peso 100,000
Purchases	Peso 500,000
Ending Inventory	Peso 150,000
COGS	Peso 450,000
US dollar exchange rate for 1 Peso:
January 1, 2010	$0.45
Average, 2010	$0.42
December 31, 2010	$0.38

The beginning inventory was acquired when the exchange rate was $0.50 last quarter of 2009; ending inventory was acquired when the exchange rate was $0.40 last quarter of 2010.

Report amounts of ending inventory and cost of goods sold to be included in the consolidated financial statements under (1) Current rate method and (2) Temporal method.

Reference no: EM13379719

Questions Cloud

Labor costs of an auto repair mechanic are seldom based on : labor costs of an auto repair mechanic are seldom based on actual hours worked. instead the amount paid a mechanic is

Acme supply sells cooking supplies to restaurants via six : acme supply sells cooking supplies to restaurants via six wholesale outlets in the metro area. the company wants to

Select a local government in your state and review the : select a local government in your state and review the financial statements and audit report for the county or

Problem 1using the information provided prepare a salary : problem 1using the information provided prepare a salary budget for fyx2 71x1 to 630x2. volume in the budget year is

1 what is the concept of current rate method of translation : 1 what is the concept of current rate method of translation and temporal method of translation? how does balance sheet

Many organizations have been in the news over the past few : many organizations have been in the news over the past few years due to accounting ethical breaches that have affected

Question 1what is the amount of unrestricted cash and : question 1what is the amount of unrestricted cash and investments at 93015?question 2what is the amount restricted cash

Mile high inc was formed in march 2011 to provide : mile high inc. was formed in march 2011 to provide prepackaged snack boxes for a new low cost regional airline

Holly company invests its excess cash in marketable : holly company invests its excess cash in marketable securities. at the beginning of 2010 it had the following portfolio

User Account

All Pages