Exam 11: Translation and Consolidation of the Financial Statements of Foreign Operations

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's beginning retained earnings?

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's inventory?

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's Common Stock?

Which of the following statements is correct?

Which of the following statements is correct?

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's assets and liabilities?

The following information pertains to questions On January 1,2011,Larmer Corp.(a Canadian company)purchased 80% of Martin Inc,an American company,for $50,000 U.S. Martin's book values approximated its fair values on that date except for plant and equipment,which had a fair market value of $30,000 U.S.with a remaining life expectancy of 5 years.A goodwill impairment loss of $1,000 U.S.occurred during 2011. Martin's January 1,2011 Balance Sheet is shown below (in U.S.dollars): Dividends declared and paid December 31,2011 The financial statements of Larmer (in Canadian dollars)and Martin (in U.S.dollars)are shown below: For questions 50 through 53 inclusively,assume that Martin is an integrated foreign subsidiary. -Translate Martin's December 31,2011 Balance Sheet into Canadian dollars.

The following information pertains to questions On December 31,2013,Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of Wilsen Corp of the United States.Wilsen's fair values approximated its book values on that date. Wilsen's comparative balance sheets for 2013 and 2014 are shown below: Wilsen paid U.S.$100,000 in dividends on September 30,2014. The inventories on hand at the end of 2014 were purchased when the exchange rate was $1U.S.= $1.195 CDN. For questions 42 through 45 inclusively,assume that Wilsen is considered to be an integrated subsidiary. -Translate Wilsen's December 31,2014 Statement of Retained Earnings.

The following information pertains to questions On December 31,2013,Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of Wilsen Corp of the United States.Wilsen's fair values approximated its book values on that date. Wilsen's comparative balance sheets for 2013 and 2014 are shown below: Wilsen paid U.S.$100,000 in dividends on September 30,2014. The inventories on hand at the end of 2014 were purchased when the exchange rate was $1U.S.= $1.195 CDN. For questions 42 through 45 inclusively,assume that Wilsen is considered to be an integrated subsidiary. -Translate Wilsen's December 31,2014 Balance Sheet.

According to IAS 29,the term "hyper- inflationary" means:

For a self-sustaining foreign operation,exchange gains and losses are to be included in or along with:

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's accounts receivable?

Which of the following statements is correct?

The following information pertains to questions ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary. -Which of the following rates would be used to translate the company's Dividends paid during the year?

The following information pertains to questions On January 1,2011,Larmer Corp.(a Canadian company)purchased 80% of Martin Inc,an American company,for $50,000 U.S. Martin's book values approximated its fair values on that date except for plant and equipment,which had a fair market value of $30,000 U.S.with a remaining life expectancy of 5 years.A goodwill impairment loss of $1,000 U.S.occurred during 2011. Martin's January 1,2011 Balance Sheet is shown below (in U.S.dollars): Dividends declared and paid December 31,2011 The financial statements of Larmer (in Canadian dollars)and Martin (in U.S.dollars)are shown below: For questions 50 through 53 inclusively,assume that Martin is an integrated foreign subsidiary. -Translate Martin's 2011 Income Statement into Canadian dollars.

The following information pertains to questions On January 1,2011,Larmer Corp.(a Canadian company)purchased 80% of Martin Inc,an American company,for $50,000 U.S. Martin's book values approximated its fair values on that date except for plant and equipment,which had a fair market value of $30,000 U.S.with a remaining life expectancy of 5 years.A goodwill impairment loss of $1,000 U.S.occurred during 2011. Martin's January 1,2011 Balance Sheet is shown below (in U.S.dollars): Dividends declared and paid December 31,2011 The financial statements of Larmer (in Canadian dollars)and Martin (in U.S.dollars)are shown below: For questions 50 through 53 inclusively,assume that Martin is an integrated foreign subsidiary. -Compute Martin's exchange gain or loss for 2011.