Questions from International Accounting

Q: Compare and contrast features of the major foreign currency translation methods introduced

Compare and contrast features of the major foreign currency translation methods introduced in this chapter. Which method do you think is best? Why?

Q: Under what set of conditions would the temporal method of currency translation

Under what set of conditions would the temporal method of currency translation be appropriate. Under what set of conditions would the current rate method be appropriate?

Q: What lessons, if any, can be learned from examining the

What lessons, if any, can be learned from examining the history of foreign currency translation in the United States?

Q: Accounting may be viewed as having three components: measurement, disclosure

Accounting may be viewed as having three components: measurement, disclosure, and auditing. What are the advantages and disadvantages of this classification? Can you suggest alternative classification...

Q: In what way is foreign currency translation tied to foreign inflation?

In what way is foreign currency translation tied to foreign inflation?

Q: How does the treatment of translation gains and losses differ between the

How does the treatment of translation gains and losses differ between the current and temporal translation methods under FAS No. 52, and what is the rationale for the differing accounting treatments?...

Q: What is the difference between the spot, forward, and swap

What is the difference between the spot, forward, and swap markets? Illustrate each description with an example.

Q: What do current, historical, and average exchange rates mean in

What do current, historical, and average exchange rates mean in the context of foreign currency translation? Which of these rates give rise to translation gains and losses? Which do not?

Q: Assume that your Japanese affiliate reports sales revenue of 250,000

Assume that your Japanese affiliate reports sales revenue of 250,000,000 yen. Referring to Exhibit 6-1, translate this revenue figure to U.S. dollars using the direct bid spot rate. Do the same using...

Q: On April 1, A. C. Corporation, a calendar

On April 1, A. C. Corporation, a calendar-year U.S. electronics manufacturer, buys 32.5 million yen worth of computer chips from the Hidachi Company paying 10 percent down, the balance to be paid in 3...