Advanced Accounting Final EXAM 100% solved

Advanced Accounting Final EXAM 100% solved A translation adjustment must be calculated and disclosed when financial statements of a foreign sub are translated into the parents reporting currency. How is this figure computed, and where is the amount reported in the financial statements? - ANSWER1st compute it to be a gain or loss from foreign currency transactions, and then it is reported in net income during the period in which the fluctuation exchange rate occurred. 2nd is cumulative translation adjustment in OCI. When is remeasurement rather than translation appropriate? How does remeasurement differ from translation? - ANSWERWhen the U.S. dollar is the functional currency in a foreign exchange and also when a foreign sub works in an inflationary country. Remeasurement gains and losses are reported in consolidated net income Which of the following statements is true for the translation process (as opposed to the remeasurement)? - ANSWERA translation adjustment is created by the change in relative value of a sub's net assets caused by exchange rate fluctuations. In comparing the translation and the remeasurement process, which of the following is true? - ANSWERThe reported balance of "sales" is normally the same under both methods What does IFRS stand for? - ANSWERInternational financial reporting standards. And it is a set of standards developed by a not-for-profit, called the (IASB)