Accounting-7796485

Accounting-7796485 - Average for 2011 0.20 = 1 What amount...

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A subsidiary of Salisbury, Inc., is located in a foreign country whose functional currency is the schweikart (SWK). The subsidiary acquires inventory on credit on November 1, 2010, for SWK 100,000 that is sold on January 17, 2011, for SWK 130,000.The subsidiary pays for the inventory on January 31, 2011. Currency enchange rates for 1 SEK are as follows: November 1, 2010-$0.16 = 1 SWK December 31, 2010- 0.17 = 1 January 17, 2011- 0.18 = 1 January 31, 2011 – 0.19 – 1
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Unformatted text preview: Average for 2011 0.20 = 1 What amount does Salisburys consolidated balance sheet report for this inventory at December 31. Ans. As the IFRS and US GAAP, the monetary items, in this case the inventory will be valued at closing rate i.e. $0.17 = SWK 1 as on December 31, 2010. Thus, the value of the inventory as on December 31, 2010 in Salisburys consolidated balance sheet is SWK 100,000 x $0.17 = $17,000.00...
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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