Reference no: EM13512496

TRUE/FALSE

1.The FASB was the first standard-setting body to address translation of foreign-based operations and holdings into U.S. dollars.

2.The U.S. dollar orientation approach to the translation of foreign operations requires an enterprise to account for foreign operations as if those operations actually occurred in U.S. dollars.

3.The U.S. dollar orientation approach to the translation of foreign operations assumes that foreign currency denominated assets, liabilities, revenues, and expenses are measured in the foreign currency but are translated to U.S. dollars for reporting purposes.

4.SFAS No. 8 required the temporal method of translation.

5.Under the temporal method of translation, all balance sheet items that are carried at current or future exchange prices are translated at the current exchange rate, while items carried at past prices are translated at exchange rates existing at the time the item was acquired.

6.Accounting exposure is the exposure to exchange gains and losses resulting from translating U.S.-dollar-denominated financial statements into foreign denominations.

7.Economic exposure directly affects consolidated cash flows.

8.SFAS No. 52 adopted a currency U.S. dollar orientation to accounting for foreign currency operations.

9.An objective of translation under SFAS No. 52 is to avoid reporting foreign-currency-denominated operations as if they had occurred in U.S. dollars.

10.Under SFAS No. 52, if the results of foreign-currency-denominated operations will not affect U.S. dollar cash flows, no exchange gain or loss is recorded.

11.The key question addressed by SFAS No. 52 involves how to report exchange gains and losses on the income statement.

12.Financing indicators are included in the guidelines provided by SFAS No. 52 for determining the functional currency.

13.The functional currency is defined as the currency of the country in which the foreign subsidiary is located.

14.The United States is included in the independent discipline dimension of accounting development.

15.Harmonization of accounting standards refers to the degree of coordination or similarity among the various sets of national accounting standards and methods and the formats of financial reporting.