Chapter 16 - Solution Manual

The financial accounting standards board has stated

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the 75 percent test is met. The Financial Accounting Standards Board has stated that if an enterprise has many reportable segments, benefit to the reader may be lost if more than 10 segments are reported. In such a situation, the board suggests combining related reportable segments until the total is ten or fewer c. Under FASB ASC 280-10-50, the following segmental information is required to be disclosed: a. Factors used to identify the public entity's reportable segments, including the basis of organization (for example, whether management has chosen to organize the public entity around differences in products and services, geographic areas, regulatory environments, or a combination of factors and whether operating segments have been aggregated) Types of products and services from which each reportable segment derives its revenues. Additionally, information about profit or loss and assets each reportable segments should be disclosed . including all of the following about each reportable segment if the specified amounts are included in the measure of segment profit or loss reviewed by the chief operating decision maker or are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss b. Revenues from external customers c. Revenues from transactions with other operating segments of the same public entity c. Interest revenue d. Interest expense e. Depreciation, depletion, and amortization expense f. Unusual items as described in paragraph 225-20-45-16 g. Equity in the net income of investees accounted for by the equity method h. Income tax expense or benefit i. Extraordinary items j. Significant noncash items other than depreciation, depletion, and amortization expense. Case 16-4 The term measure, as used by the Financial Accounting Standards Board, refers to the quantification of an attribute of an item in a unit of currency other than the reporting currency. In this respect, transactions or balance reflected on a foreign financial statement are expressed in terms of U.S. dollars by applying the appropriate exchange rate to the foreign amount. This process is referred to as translation. It is possible to measure a given transaction or balance in terms of any other currency if the appropriate exchange rate is known. An asset or liability is denominated in a foreign currency if the liability or right to receive is fixed in terms of the foreign currency, regardless of the exchange rate. When an account receivable (or payable) is created and stated in fixed amounts of the foreign currency, the entity has the right (obligation) to receive (pay) the originally stated number of units of foreign currency. A change in the exchange rate between the date of the right to receive (obligation to pay) and the date the asset (liability) is received (paid) gives rise to an exchange gain or loss. An asset or liability may only be denominated in one currency.
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341 Any given transaction may be measured in one currency and denominated in another currency.
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