标题: Reading 23: Multinational Operations-LOS f 习题精选 [打印本页]
作者: 土豆妮 时间: 2010-4-14 16:17 标题: [2010]Session 6-Reading 23: Multinational Operations-LOS f 习题精选
Session 6: Financial Reporting and Analysis: Post-Employment and
Share-Based Compensation and Multinational Operations
Reading 23: Multinational Operations
LOS f: Illustrate and analyze alternative accounting methods for subsidiaries operating in hyperinflationary economies.
Which of the following asset or liability values is likely to be the most understated in a hyperinflationary economy if translation occurs under the all-current method?
|
A) |
A plant purchased several years ago. | |
|
|
|
|
The accounts receivable and dividends payable will each have book values that are closer to their market values than a plant purchased many years ago.
作者: 土豆妮 时间: 2010-4-14 16:17
In a hyperinflationary economy, translation under the all-current method will most likely result in relatively:
|
A) |
low balance sheet values for long term liabilities. | |
|
B) |
high balance sheet values for long term assets. | |
|
C) |
high translation gains. | |
In a hyperinflationary economy, translation under the all-current method will most likely result in relatively low balance sheet values for assets and liabilities. Translation losses will also occur.
作者: 土豆妮 时间: 2010-4-14 16:17
The temporal method (remeasurement) is preferred to the all-current method (translation) in hyperinflationary economies because remeasurement:
|
A) |
is easier than translation to perform under hyperinflation. | |
|
B) |
results in non-monetary asset values that are a better proxy for the economic values of those assets (versus the all-current method). | |
|
C) |
provides better conversions of subsidiary revenues. | |
Remeasurement results in non-monetary asset values that are a better proxy for the economic values of those assets than those obtained under the all-current method. Both remeasurement and translation convert revenues and SG&A at the average rate so there could be no clear preference when considering these measures.
作者: 土豆妮 时间: 2010-4-14 16:18
Which translation method should be used under a hyperinflationary economy?
|
A) |
Temporal, because all non-monetary accounts are re-measured at the historical rate. | |
|
B) |
All-current, because dividends are translated at the rate that applied when they were issued. | |
|
C) |
Monetary/non-monetary, because all monetary accounts are translated at the historical rate. | |
The temporal method is more appropriate because all non-monetary accounts are remeasured at the historical rate.
作者: 土豆妮 时间: 2010-4-14 16:18
For a subsidiary in a hyperinflationary economy, the functional currency should be the:
|
|
|
B) |
Subsidiary's operating currency. | |
|
|
The functional currency should be the parent's currency.
作者: 土豆妮 时间: 2010-4-14 16:18
A hyperinflationary economy is typically defined as one that has:
|
A) |
cumulative inflation that exceeds 100% over a three-year period. | |
|
B) |
an inflation rate that exceeds 10% per year for three consecutive years. | |
|
C) |
cumulative inflation that exceeds 100% over a twelve-year period. | |
The typical definition is that cumulative inflation exceeds 100% over a three-year period.
作者: 土豆妮 时间: 2010-4-14 16:18
In reality, what best describes the real value of non-monetary assets and liabilities in a hyperinflationary environment?
|
A) |
Typically not affected because their local currency-denominated values decrease to offset the impact of inflation. | |
|
B) |
Typically not affected because their local currency-denominated values increase to offset the impact of inflation. | |
|
C) |
All non-monetary accounts are re-measured at the current rate. | |
Typically not affected because their local currency-denominated values increase to offset the impact of inflation (i.e., real estate values typically rise with inflation).
作者: 土豆妮 时间: 2010-4-14 16:19
Which of the following best describes the situation in a hyperinflationary economy? Purchasing power of the foreign currency will:
|
A) |
dramatically appreciate and the foreign currency will be rapidly appreciating against the reporting currency. | |
|
B) |
quickly deteriorate and the foreign currency will be rapidly appreciating against the reporting currency. | |
|
C) |
quickly deteriorate and the foreign currency will be rapidly depreciating against the reporting currency. | |
Purchasing power and foreign currency will depreciate.
作者: luqian55 时间: 2010-6-1 05:43
thanks
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) |
Powered by Discuz! 7.2 |