Questions from Advanced Accounting


Q: Does the FCT method use the same unit of measure as the

Does the FCT method use the same unit of measure as the PCT method? Explain.

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Q: The amount of the accumulated foreign exchange adjustments appearing in the translated

The amount of the accumulated foreign exchange adjustments appearing in the translated financial statements of a subsidiary could be different from the amount appearing in the consolidated financial s...

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Q: "If the translation of a foreign operation produced a gain under

"If the translation of a foreign operation produced a gain under the FCT method, the translation of the same company could produce a loss if the operation were translated under the PCT method." Do you...

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Q: Explain how the FCT method produces results that are consistent with the

Explain how the FCT method produces results that are consistent with the normal measurement and valuation of assets and liabilities for domestic transactions and operations.

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Q: When translating the financial statements of the subsidiary at the date of

When translating the financial statements of the subsidiary at the date of acquisition by the parent, the exchange rate on the date of acquisition is used to translate plant assets rather than the exc...

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Q: If the sales of a foreign subsidiary all occurred on one day

If the sales of a foreign subsidiary all occurred on one day during the year, would the sales be translated at the average rate for the year or the rate on the date of the sales? Explain.

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Q: Would hedge accounting be used in a situation in which the hedged

Would hedge accounting be used in a situation in which the hedged item and the hedging instrument were both monetary items on a company's statement of financial position? Explain.

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Q: What are the three major issues related to the translation of foreign

What are the three major issues related to the translation of foreign currency financial statements?

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Q: Why might a company want to hedge its balance sheet exposure?

Why might a company want to hedge its balance sheet exposure? What is the paradox associated with hedging balance sheet exposure?

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Q: Explain how the acquisition cost is determined for a reverse takeover.

Explain how the acquisition cost is determined for a reverse takeover.

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