What is the translation amount to be shown on american


Suppose that on January 1, American Golf's Mexico subsidiary, Golf de Mexico , had a balance sheet that showed current assets of Mex$1 million; current liabilities of Mex$300,000; total assets of Mex$2.5 million; and total liabilities of Mex$900,000. On December 31, Golf de Mexico's balance sheet in pesos was unchanged from the figures given above, but the peso had declined in value from $0.1270 at the start of the year to $0.1180 at the end of the year. Under FASB-52, what is the translation amount to be shown on American Golf's equity account for the year if the peso is the functional currency? How would your answer change if the dollar were the functional currency?

Solution Preview :

Prepared by a verified Expert
Financial Accounting: What is the translation amount to be shown on american
Reference No:- TGS0776518

Now Priced at $30 (50% Discount)

Recommended (96%)

Rated (4.8/5)