Presentation method-foreing branches, Financial Accounting

Assignment Help:

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.


Related Discussions:- Presentation method-foreing branches

Americans with disabilities act - ada, Americans With Disabilities Act - AD...

Americans With Disabilities Act - ADA  legislation passed in 1990 that bans discrimination against people who are having disabilities. According to this Act, discrimination against

Calculate the average issue price of the common stock, Star corporation iss...

Star corporation issued both common and predered stock during 20X6. The stockholders' equity section of the company's balance sheets at the end of 20X6 and 20X5 follow: 20X6 20X5 P

What is the approximate tax rate, 1. From your review of note 3.7, how does...

1. From your review of note 3.7, how does the company determine whether a sale has occurred? 2. Using the consolidated income statement and consolidated statement of financial p

What do you understand by accumulated funds, QUESTION 1: Part A Ma...

QUESTION 1: Part A Malcolm was in business as an import merchant and the following balances were extracted from his books on 31st December 2003: Purchases

Compute both basic and diluted earnings per share, 1. Assume that the follo...

1. Assume that the following data relative to Eddy Company for 2014 is available: Net Income $1,400,000 Transactions in Common Shares Change Cumulative Jan. 1, 2014, Beginnin

What you did and thinking process, During 2012, Kimmel Co. incurred average...

During 2012, Kimmel Co. incurred average accumulated expenditures of $600,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding

Types of interest given under a will-executorship laws, Types of interest g...

Types of interest given under a will The interest given in a legacy, devise or gift of residue may be of the following kinds:- 1. Vested: A vested interest gives an immedi

Prepare financial report for large accounting firm, Question: You are a...

Question: You are a member of a large accounting firm which is responsible for preparing financial reports, including statements and notes to the accounts; and for advising sta

Loan stock in subsidiary-group accounts , Loan stock in subsidiary The h...

Loan stock in subsidiary The holding company may also invest in the loan stock of the subsidiary company or part of the loan stock of the subsidiary company. The cost of the loa

DEPRECIATION, HOW TO CALCULATE SINKING FUND METHOD

HOW TO CALCULATE SINKING FUND METHOD

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