Fundamentals of Advanced Accounting Errata List and ...
Fundamentals of Advanced Accounting Errata List and Corrections
Chapter 7
1. Exhibit 7-2 corrected below (highlighted material indicates corrections):
| |Remeasurement |Translation |
| |Investee's books of record remeasured into |Functional currency translated into parent/ |
| |functional currency—historical rate/ temporal method|investor's reporting currency—current |
| | |rate/functional method |
|When to use |When functional currency is not the books of record |When functional currency is the books of record |
| |(local) currency or when functional currency is |(local) currency or when the functional currency |
| |inflationary |is not highly inflationary |
|Assets and Liabilities: | | |
|Monetary items* or measured at current |Remeasure using current exchange rate |Translate using current exchange rate |
|values | | |
|Not monetary items or not measured at |Remeasure using historical exchange rates |Translate using current exchange rate |
|current values | | |
|Equity Accounts: | | |
|Equity accounts (excluding retained |Remeasure using historical exchange rates** |Translate using historical exchange rates** |
|earnings) | | |
|Retained earnings |Beginning remeasured balance plus (minus) remeasured|Beginning translated balance plus (minus) |
| |net income (loss) less dividends (remeasured using |translated net income (loss) less dividends |
| |historical exchange rates) |(translated using historical exchange rates) |
|Revenues and Expenses: | | |
|Representing amortization of historical |Remeasure using historical exchange rates |Translate using weighted-average exchange rate for|
|amounts | |the period |
|Other income and expense items |Remeasure using weighted-average exchange rate for |Translate using weighted-average exchange rate for|
| |the period |the period |
|Accounting for remeasurement gain or loss |Remeasurement gain or loss recorded as a component |Cumulative translation adjustment recorded as a |
|and translation adjustment |of current period net income |component of other comprehensive income. The |
| | |translation adjustment is recognized as a |
| | |component of current period net income when there |
| | |is a partial or complete sale or complete or |
| | |substantially complete liquidation of the |
| | |investment in the foreign entity. |
|*Monetary items represent rights to receive or pay an amount of money which is (1) fixed in amount or (2) determinable without reference to future |
|prices of specific goods/services; that is, its value does not change according to changes in price levels. |
|**If amounts are to be remeasured or translated at historical exchange rates which are traceable to transactions occurring prior to the parent's |
|date of acquisition, they should be remeasured/translated at the historical exchange rate existing at the parent's date of acquisition. |
| |
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- fundamentals of healthcare finance pdf
- fundamentals of financial management 14th
- fundamentals of financial management pdf
- fundamentals of financial management ebook
- fundamentals of accounting pdf
- list of advanced vocabulary
- advanced accounting books pdf
- advanced accounting pdf
- fundamentals of accounting college textbooks
- advanced accounting equation
- list of top accounting firms
- comparison of management accounting and financial accounting