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Flashcards in 20E Wrong Answers Deck (6):
0

Under Translation with low inflation how are assets valued?

2) Liabilities?

Assets valued at current rate at year end

Liabilities valued at current rate at year end

1

During the SIMs what are the exchange rates for retained earnings, OCI and total liabilities and stockholder's equity?

There is no exchange rate

2

What happens to other comprehensive income on a balance sheet translation, when its balance in the foreign currency = $0?

It's value in US dollars is the difference between total assets
And total liabilities + stockholder's equity without OCI

3

Translation adjustments resulting from the translation of foreign currency statements should be reported...3

1 Separately as a component of other comprehensive income,

2 accumulated other comprehensive income

3 stockholder's equity

4

Gains an losses of foreign transactions, designated as economic hedges of a net investment in a foreign entity should be included in...

Other comprehensive income

5

Both the translation loss and the exchange gain are to be reported as...2

Other comprehensive income

And accumulated other comprehensive income in the stockholder's equity section of the balance sheet