Questions from International Accounting

Q: What is the concept underlying the current rate method of translation?

What is the concept underlying the current rate method of translation? What is the concept underlying the temporal method of translation? How does balance sheet exposure differ under these two methods...

Q: What are the major procedural differences in applying the current rate and

What are the major procedural differences in applying the current rate and temporal methods of translation?

Q: How does a parent company determine the appropriate method for translating the

How does a parent company determine the appropriate method for translating the financial statements of a foreign subsidiary?

Q: What are the major differences between IFRS and U.S.

What are the major differences between IFRS and U.S. GAAP in the translation of foreign currency financial statements?

Q: What does the term functional currency mean? How is the functional

What does the term functional currency mean? How is the functional currency determined under IFRS and under U.S. GAAP?

Q: Which translation method does U.S. GAAP require for operations

Which translation method does U.S. GAAP require for operations in highly inflationary countries? What is the rationale for mandating use of this method?

Q: Quantacc Company began operations on January 1, Year 1, and

Quantacc Company began operations on January 1, Year 1, and uses IFRS to prepare its financial statements. Quantacc reported net income of $100,000 in Year 5 and had stockholders’ equity of $500,000 a...

Q: Explain why the legal concept of control may be appropriate in some

Explain why the legal concept of control may be appropriate in some countries, such as Japan.

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?

Q: Why is it important that, in countries with high inflation,

Why is it important that, in countries with high inflation, financial statements be adjusted for inflation?