--%>
Assignment Help - homework help

Monetary/nonmonetary and temporal method

Discuss dissimilarity in translation process between monetary/nonmonetary and temporal method.

E

Expert

Verified

In the monetary/nonmonetary method, all monetary balance sheet accounts of the foreign subsidiary are translated at current exchange rate.  Another balance sheet accounts are transformed at historical rate exchange rate in effect while the account was first recorded.  Within the temporal method, monetary accounts are translated at current exchange rate.  Other balance sheet accounts are also converted at the current rate, if they are carried on books at the current value.  In case they are carried out at the historical value, they are translated at rate in effect on date the item was put on the books.  As fixed assets and inventory are generally carried at the historical costs, temporal method and the monetary/nonmonetary method will normally offer the same translation.

   Related Questions in Financial Accounting

  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

    		•
  • Q : Characteristics of Composite currency

    State the characteristics of the Composite currency bonds market instrument.

    		•
  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

    		•
  • Q : Components of social interaction

    Identify and explain important components of social interaction.

    		•
  • Q : Freedmens Bureau What did Freedmen’s

    What did Freedmen’s Bureau do?

    		•
  • Q : Canadian Outdooring Explain Canadian

    Explain Canadian Outdooring in brief ?

    		•
  • Q : Free international trade in goods and

    Explain, how economic well-being of a country is improved through free international trade in the goods and services?

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

    		•
  • Q : Liabilities and Assets in Balance Sheet

    Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

    		•