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Flashcards in 20E Wrong Answers Deck (6):

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


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

There is no exchange rate


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


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


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


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