--%>
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 : What is forfaiting transaction What is

    What is meant by the forfaiting transaction?

    		•
  • Q : Random walk model for exchange rate

    Explain about random walk model for exchange rate forecasting. Will it be reliable with the technical analysis?

    		•
  • Q : What is the opening accounts receivable

    Big Problem Ltd., an oil refining business uses an allowance system to account for bad debts. At the beginning of the year the allowance had a credit balance of $16,000. The following transactions took place during the year. a) Tot

    		•
  • Q : Historical Cost of Liabilities State

    State the Historical Cost of Liabilities?

    		•
  • Q : Essay-People Dependent on technology

    PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h

    		•
  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

    		•
  • Q : Explain Due Diligence Due Diligence: 1.

    Due Diligence:1. General: Assess of prudence, accountability, and diligence which is expected from, and ordinarily exercised by, a reasonable and prudent person beneath the situations.

  • Q : Standard costing is a separate system

    Wheather it is correct or not that standard costing is a separate system in accounting?

    		•
  • Q : Define Revenue Revenue : The amount

    Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find

    		•
  • Q : Closed-end country funds trading at

    Why closed-end country funds often trade at the premium or discount?

    		•