--%>
Assignment Help - homework help

Methods handling translation gains and losses

How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

E

Expert

Verified

Under method of the current rate, translation gains and losses are handled as an adjustment to the net worth through an equity account termed as the ‘cumulative translation adjustment’ account.  Nothing passes through income statement.  Another three translation methods pass foreign exchange gains or losses through income statement before they enter on to balance sheet through the accumulated retained earnings account.

   Related Questions in Financial Accounting

  • Q : Explain Agricultural business Explain

    Explain the term Agricultural business in term of Accounting?

    		•
  • Q : Explain international Fisher effect

    Explain and also derive international Fisher effect.

    		•
  • Q : Investment approach of Lynch Investment

    Investment approach of Lynch: Peter Lynch, the best known mutual fund manager, also adopts the words of Benjamin Graham in the sense that he looks at companies not from the perspective of how the stock prices move

    		•
  • Q : Cross-hedging and its effectiveness

    Discuss cross-hedging and also some of the factors evaluating its effectiveness.

    		•
  • Q : Write a Matlab function Fourbar Write a

    Write a Matlab function Fourbar (r1,r2,r3,r4,theta,speed) that animates three cycles of a fourbar linkage having link lengths r1, r2, r3, r4. The function first checks to ensure the mechanism isGrashof (including the change-point c

    		•
  • Q : Small talk Define small talk and

    Define small talk and discuss its role in developing the relationship.

    		•
  • Q : Trends in international business

    Explain three important trends which have prevailed in the international business during last two decades.

    		•
  • Q : What are equipment expenses What is

    What is equipment expense or what are equipment expenses?

    		•
  • Q : Fundamenetal Issues on Management

    1.  Somerset Ltd manufactures components for the motor industry. In one of its workshops it has three workers, Joe, Jack and Jonny, who at any one time work on batches of the same component. The standard time allowed to produce one unit is one hour. The workers rate of pay is

    		•
  • Q : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

    		•