Final

Question 1

What needs to be included in the AD Amortization schedule if less than 100%?

Answer 1

ATP and NCI

Question 2

% ownership for passive, associate and subsidiary control

Answer 2

Pass: under 20%
Associate: 20-50%
Subsid: >50%

Question 3

FVE vs INA for NCI calc

Answer 3

INA: (Net Assets + FV increment) * minority %
FVE: Purchase / % ownership

Question 4

What needs to be remembered when calculating investment income JEs?

Answer 4

Offset with NI:
Upstream/downstream after-tax profits
AD Amortizations

Question 5

What are the three headings needed when calculating unrealized profits?

Answer 5

Before Tax
Tax Cost
After Tax

Question 6

Steps for FX / forward contract when no hedge accounting

Answer 6

Initial Rec/Pay
FX Gain/Loss YE
Reverse at settlement
Inventory purchase

Question 7

Steps for FX / forward contract when FV Hedge

Answer 7

Same as No hedge except:
Update commitment asset/liability at YE
Update commitment asset/liability at settlement
Reverse out Commitment asset/liability at settlement

Question 8

Steps for FX / forward contract when CF Hedge

Answer 8

Same as No Hedge except:
Use OCI instead of FX Gains/losses
Reverse AOCI at settlement

Question 9

What is the default rate for the SFP?

Answer 9

Year end rate

Question 10

What is the default rate for the SCI?

Answer 10

Average rate

Question 11

What method is used if sub’s functional currency is the same as the parent?

Answer 11

Temporal Method

Question 12

What method is used if sub’s functional currency is different than the parent?

Answer 12

Current rate method

Question 13

How to calc retained earnings for SFP consol?

Answer 13

Parent RE
+ (Sub RE increase -unrealized after tax profits) * % own
- Parent share of AD amort

Question 14

How to calc NCI for SFP Consol?

Answer 14

(Sub Net Assets

• Unrealized after tax profits) * % NCI
• Sub share of unamort AD