User Account

All Pages

What the ramifications to consolidated financial statements

Assignment Help Accounting Basics
Reference no: EM131997484

Question - SIMCO Commercial Corporation (SCC) is located in Godalming, United Kingdom (U.K.). SCC is owned by an investment group located in London and all corporate functions are performed in Godalming. However, manufacturing operations occur in both the U.K. and South Africa. SCC's president made the statement that the corporation should use the EU as functional currency since administrative functions are performed in the U.K and the corporate headquarters are domiciled here. However, the head of operations stated that the functional currency, at least for the manufacturing arm, should be the South African Rand because all materials are purchased locally and 80% of manufacturing occurs in South Africa.

Prepare a one page essay that discusses which individual you agree with and why. In your essay, address the following:

What are the ramifications to the consolidated financial statements of SCC if the EU is used as the functional currency for the manufacturing operations located in South Africa?

What are the ramifications to the consolidated financial statements of SCC if the South African Rand is the functional currency used for the manufacturing operations located in South Africa?

Reference no: EM131997484

Questions Cloud

Determine the unrealized holding gain or loss on the note : Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. Determine the unrealized holding gain or loss on the note
Show what the balance sheet will look like : The stockholders' equity portion of Brimstone Tire Company follows: Common Stock (2.0 million shares at $10 par) $20,000,000 .
Political process and the impact of affirmative action : Have you personally seen an impact in your life or someone's you know? Please share your thoughts on this.
What would the risk-free rate have to be for the two stocks : Stock Y has a beta of 1.40 and an expected return of 14.2 percent. Stock Z has a beta of .85 and an expected return of 10.7 percent.
What the ramifications to consolidated financial statements : What are the ramifications to the consolidated financial statements of SCC if the EU is used as the functional currency for the manufacturing operations
Create a synthetic bond with maturity t : Stock XYZ trades at a current level of S0 = 120, the continuously compounded dividend yield is 2.5%, the continuous interest rate is 4%.
Like-minded friends have decided to create a country : You and some like-minded friends have decided to create a country, founded upon the idea that individual liberty should be the most important principle.
What are his allowable itemized deductions : Steven, age 35, is a single commodities broker. His salary for 2009 is $110,000, What is his deduction for personal exemptions
What are the reward-to-risk ratios of y and z : Stock Y has a beta of 1.00 and an expected return of 15.50 percent. Stock Z has a beta of .80 and an expected return of 7 percent.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Army-navy surplus sold 320 tents and at march 31 the ending

army-navy surplus began march with 70 tents that cost 20 each. during the month amy-navy surplus made the following

  Describe three components in the net post employment costs

In its 2013 annual report to shareholders, Marianne James Companies Inc. (MJCI) disclosed the information. Describe the three components in the net post employment costs disclosed by MJCI.

  Compute the amount of the bonus payable to the employees

For the year ended December 31, 2011, Winter Company has implemented an employee bonus program equal to 3% of Winter's net income, which employees will share equally. Winter's net income (prebonus) is expected to be $1,000,000, and bonus expense i..

  Impression of the listener

1. What is your likely impression of the listener?

  Prepare a production budget for the month

Required: Prepare a production budget for the month of April 30, 2017.

  What is the inventory turnover ratio

Assume a firm's inventory level of $13,500 represents 37 days' sales. What is the inventory turnover ratio? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

  Prepare trail balance income statement owners equity

prepare trail balance income statement owners equity statement and balance sheet.journalize may transactions.post

  Determine the amount of net capital loss carried back

Lass Corporation reports a $25,000 net capital loss this year. The corporation reports the following net capital gains during the past three years. Year Net Long-Term Capital Gain Net Short-Term Capital GainThird previous yearYear before lastLast yea..

  What amount should be recorded as bad debt expense

What amount should be recorded as bad debt expense for the current year

  Determine human behavior in organizations and the forces

1. evaluate human behavior in organizations and the forces shaping the behavior.2. analyze individual differences

  Revez owns an antique shop he buys property from estates

revez owns an antique shop. he buys property from estates often at much less than the retail value of the property.

  Boards and the iasb equivalents of the fasb

Write a 1,050- to 1,400-word paper describing the relationship between the IASB and the FASB. Include the following in your paper:

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd