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- UID
- 223444
- 帖子
- 358
- 主题
- 13
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-6
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janakisri Wrote:
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> Equity consists of Common Stock + Retained
> Earnings.
>
> Common Stock is translated at an older ( higher US
> Dollars ) rate.
>
> But Retained Earnings could be translated at a
> higher or lower rate depending on the mixture of
> assets and liabilities .
>
>
> Retained earnings = Asstes - Liabilities - Common
> Stock.
>
> Liabilities are usually debts and other payables ,
> mostly transalated at current rates . Assets can
> be PP&E which are translated at historical or
> current assets / liabilities which ar treated as
> monetary/current.
>
> I'd say because of this confusion that it is not
> clear how ROE will wind up.
>
>
> For a company which reduces its subsidiary's
> common stock portion to nearly zero , the Equity
> portion is mostly retained earnings which could
> fluctutate in step with Net Income , making ROE
> indeterminate
Equity, taken as a whole, is translated at the current rate. While it is true that all of the components of equity are translated at different rates (e.g. common stock is translated at historical, retained earnings is mixed, etc.), the CTA brings equity as a whole to be translated at the current rate.
That's the only way that A (current) = L (current) + E (?). The ? has to be current. |
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发表于 2011-7-13 13:44
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