Topic IFRS for consolidation of international subsidiaries LO 4 IFRS for

Topic ifrs for consolidation of international

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58.Topic:IFRS for consolidation of international subsidiariesLO 4IFRS for converting the account balances of an international subsidiary in a hyperinflationarycountry to the parent’s presentation currency requires:a.Remeasurement of the subsidiary’s accounts to the parent’s presentation currencyb.Translation of the subsidiary’s accounts to the parent’s presentation currencyc.Price-level adjustment of the subsidiary’s accounts, and then translation of the accountsto the parent’s presentation currencyd.Price-level adjustment of the subsidiary’s accounts, and then remeasurement of theaccounts to the parent’s presentation currencyANS:c59.Topic: IFRS for consolidation of international subsidiariesLO 434A U.S. company has a subsidiary in a country with high inflation. The subsidiary’s functionalcurrency is its local currency. Which statement is trueconcerning IFRS vs U.S. GAAP forconverting this subsidiary’s accounts to U.S. dollars?©Cambridge Business Publishers, 20167-24Advanced Accounting, 3rd Edition
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60.Topic: IFRS for consolidation of international subsidiariesLO 4Venezuela is designated as a highly inflationary country. A Venezuelan subsidiary of an Italiancompany owns land that it bought for 1,000,000 bolivar, when the €/bolivar rate was €0.90 andthe price level index was 100. It is now the end of the current year. In which situation below will IFRS and U.S. GAAP report the same end-of-year amount for theland, in euros?
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