Explain the re-measurement and translation process, Financial Management

Assignment Help:

Explain the re-measurement and translation process within FASB 52 of translating into the reporting currency the books of a completely owned affiliate that keeps its books in the local currency of the country where it operates, which is different as compared to its functional currency.

Answer:  For a foreign entity which keeps its books in its local currency, which is dissimilar from its functional currency, the translation process as per to FASB 52 is to:  1st, re-measure the financial reports from the local currency into the functional currency by using the temporal method of translation, and 2nd, translate from the functional currency into the reporting currency by using the current rate method of translation.


Related Discussions:- Explain the re-measurement and translation process

Operating cycle, discuss the applicability of operating cycle and any other...

discuss the applicability of operating cycle and any other financial knowledge to poultry business in uganda

Equity stock, the stock of akpan ltd performs well during recessionary peri...

the stock of akpan ltd performs well during recessionary periods, and the stock of okon ltd does well during growth periods. both stocks are currently selling for Rs 100 per share

Determine the motivation foreign firm - high - tech u.s firm, Currently, ma...

Currently, many foreign firms from both developed and developing countries obtained high-tech U.S. firms. What might have motivated these firms to obtain U.S. firms? Answer: Se

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

Inverse floaters, Normally, floater coupon rate moves in the same dir...

Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases

Describe puttable-convertible-foreign bonds and eurobonds, Describe the Put...

Describe the Puttable, Convertible, Foreign and Eurobonds. With puttable bonds the release date is under control of the holder (that is the opposed of the callable bond case)

What is the market risk premium in spain at the present, What is the market...

What is the market risk premium in Spain at the present moment - the number which I have to use in the valuations? It is not possible to talk of "the" market premium for Spain.

Find the impact of price and trading volume, Purpose of research: The a...

Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".

Explain the internalization theory of fdi, Normal 0 false fal...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

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