答案和详解如下： Q44. The Precision Screen Printers (PSP) Company has a foreign subsidiary, the Acer Tool & Die Company, located in the country of Rolivia. The currency of Rolivia is the Chad. The balance sheet and income statement of Acer Tool & Die Company for the year-ended December 31, 2002, is shown below. The balance sheet has been restated using the U.S. dollar as the functional currency. Acer Tool & Die Company Balance Sheet As of December 31, 2002
|
| Chad (millions) | Exchange Rate (Chad/US$) | U.S. $ (millions) | Cash | 20 |
| 0.25 |
| $80 |
| Accounts receivable | 30 | 0.25 | 120 | Inventory | 100 | 0.3125 | 320 | Fixed assets (net) | 500 | 0.3333 | 1,500 | Total assets | 650 |
| $2,020 |
| Accounts payable | 50 |
| 0.25 |
| $200 |
| Capital stock | 380 | 0.3333 | 1,140 | Retained earnings | 220 | -- | 680 | Total liabilities and equity | 650 |
| $2,020 | Acer Tool & Die Company Income Statement For year ending December 31, 2002 (Amounts in millions of Chad) | Revenues | 1,000 | Cost of sales | 700 | Depreciation expense | 50 | Selling expense | 30 | Net income | 220 | | | | | | | | |
The exchange rate at the beginning of 2002 was 0.3333 Chad/US$. The exchange rate at the end of 2002 was 0.25 Chad/US$. The average rate for 2002 is 0.3125 Chad/US$. Beginning inventory is 90 Chad. Acer Tool & Die uses FIFO inventory valuation and depreciates fixed assets using the straight-line method. Using the current rate method for the Acer Tool & Die Company, what is the value of total assets after translation? A) $2,600. B) $2,020. C) $1,950. Correct answer is A) The basis for using the all current method is when Functional Currency is NOT the same as Parent's Presentation (reporting) Currency. The basis for using the temporal method is when Functional Currency = Parent's Presentation Currency.
With the current rate method, all balance sheet items except for common stock are translated at the current rate. Total assets = 650 / 0.25 = $2,600. | 
发表于 2009-1-17 16:10
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