--%>
Assignment Help - homework help

Re-measurement and translation procedure in FASB 52

Explain the re-measurement and translation procedure in FASB 52 of translating to the reporting currency the books of the entirely owned affiliate which maintains its books in local currency of country in which it operates, that is different from its functional currency.

E

Expert

Verified

For foreign entity which keeps its books in its local currency, which is dissimilar from its functional currency, translation method as per FASB 52 is to:

a) Re-measure financial reports from the local currency to the functional currency by using the temporal method of translation, and

b) Translate functional currency to the reporting currency by using current rate method of the translation.

   Related Questions in Financial Accounting

  • Q : Determining interest rate parity

    Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.

    		•
  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

    		•
  • Q : Explain Gross margin Explain Gross

    Explain Gross margin with their appropriate formulas?

    		•
  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

    		•
  • Q : MONEY MEASUREMENT CONCEPT DESCRIBE THE

    DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF MONEY MEASUREMENT CONCEPT

    		•
  • Q : Cash Discount State the definition of

    State the definition of Cash Discount?

    		•
  • Q : Types of groups Identify and describe 4

    Identify and describe 4 types of groups; provide examples.

    		•
  • Q : Retail or client market and wholesale

    Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

    		•
  • Q : International portfolio for buying

    Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?

    		•
  • Q : Accountancy Accountancy is the process

    Accountancy is the process of communicating financial information about a business entity to users such as shareholder and manager. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in s

    		•