Chapter 10-6

# Chapter 10-6 - CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Problems 23(10 minutes(Determine translation and

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CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Problems 23.(10 minutes) (Determine translation and remeasurement rates) Translation Remeasurement Accounts payable \$.16 C \$.16 C Accounts receivable \$.16 C \$.16 C Accumulated depreciation \$.16 C \$.26 H Advertising expense \$.19 A \$.19 A Amortization expense \$.19 A \$.25 H Buildings \$.16 C \$.26 H Cash \$.16 C \$.16 C Common stock \$.28 H \$.28 H Depreciation expense \$.19 A \$.26 H Dividends paid (10/1) \$.20 H \$.20 H Notes payable \$.16 C \$.16 C Patents (net) \$.16 C \$.25 H Salary expense \$.19 A \$.19 A Sales \$.19 A \$.19 A * C = current rate, H = historical rate, A = average rate

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24. (20 minutes) (Calculate translation adjustment and remeasurement gain/loss and explain their economic relevance) The translation adjustment and remeasurement gain/loss can be determined as the plug figure that keeps the dollar balance sheet in balance: Translation Remeasurement CHF Rate US\$ Rate US\$ Cash. ........................... 500,000 \$.75 C
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## This note was uploaded on 02/08/2012 for the course ACCOUNTING 559 taught by Professor Keating during the Spring '07 term at DeVry Addison.

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Chapter 10-6 - CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Problems 23(10 minutes(Determine translation and

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