Questions from Advanced Accounting

Q: What is required to disclose concerning the changes in a firm’s cumulative

What is required to disclose concerning the changes in a firm’s cumulative translation adjustment?

Q: Pam Corporation owns 60 percent of Sun Corporation and 80 percent of

Pam Corporation owns 60 percent of Sun Corporation and 80 percent of Tim Corporation. Tim owns 20 percent of Sun. Separate income and loss data (not including investment income) for the three affiliat...

Q: A summary of the assets and equities of Pot Corporation and its

A summary of the assets and equities of Pot Corporation and its 80 percent–owned subsidiary, Sea Corporation, at December 31, 2016, is given as follows (in thousands): On January 2...

Q: Should a firm readjust after the fiscal period end if before the

Should a firm readjust after the fiscal period end if before the release of their statements the exchange rate is materially different?

Q: What procedure is used to allocate the investment purchase price at the

What procedure is used to allocate the investment purchase price at the date of acquisition of a foreign subsidiary?

Q: Describe what the current rate method is and under what circumstances it

Describe what the current rate method is and under what circumstances it should be used.

Q: Describe what the temporal method is and under what circumstances it should

Describe what the temporal method is and under what circumstances it should be used.

Q: If the current rate method is used, the gain or loss

If the current rate method is used, the gain or loss on translation is included under other comprehensive income. Explain why this makes sense economically.

Q: Under what circumstances would a foreign entity’s financial statements need to be

Under what circumstances would a foreign entity’s financial statements need to be both remeasured and translated? Would this process have an effect on both the income statement and other comprehensive...

Q: If a company’s sales were very seasonal—for example, a

If a company’s sales were very seasonal—for example, a holiday-tree grower—would it be appropriate to use the annual average exchange rate to translate and remeasure sales and other expenses? Why or w...