答案和详解如下： Q4. Hirauye is working on consolidating the financial statements of Molsan Industries’ Japanese subsidiary. Under SFAS 52, regarding Foreign Currency Translation, if: A) more than half of the subsidiary's revenue is from Japanese sources, then the results of the Singapore operation are translated into Japanese yen and then translated into Canadian dollars. B) management determines that the subsidiary's functional currency is the Japanese yen, the results of the Singapore operation are first remeasured into Japanese yen and then translated into Canadian dollars. C) management determines that the subsidiary's functional currency is the Singapore dollar, then the results of the Singapore operation are remeasured into Canadian dollars. Correct answer is B) The functional currency is determined by management. Financial data are remeasured into the functional currency chosen by management and then translated into the reporting currency. Q5. Wilkins has been tasked with analyzing Tylo Corporation, and is trying to distinguish between the various currencies employed in Tylo’s operations. Concerning functional and reporting currencies the: A) functional currency and reporting currency are the U.S. dollar. B) functional currency is the British Pound; reporting currency is the U.S. dollar. C) firm is headquartered in France, therefore the functional currency is the Euro, and the reporting currency is the U.S. dollar. Correct answer is B) The functional currency is defined as the currency of the primary economic environment in which the subsidiary generates and expends cash. Although the functional currency can be chosen by management, because we are told that Tylo generates and expends cash in British Pounds, the British Pound is the best choice for the functional currency. The reporting currency is the currency in which the firm prepares final consolidated statements, which in this case is the U.S. dollar. Q6. Ortiz had told the junior analysts to make sure they understand the different accounting rules under SFAS 52. When referring to foreign exchange rates, the difference between remeasurement and translation is that remeasurement: A) and translation refer to the same process of translating the functional currency into the reporting currency. B) is used to describe historical exchange rates while translation is used for current rates. C) refers to the conversion of local currency into the functional currency; translation is the conversion of the functional currency into the reporting currency. Correct answer is C) Translation is between functional and reporting currency. Remeasurement occurs between local and functional currencies. Q7. Regarding the statements made at lunch: A) Windbigler’s statement is incorrect; Alvarez’s statement is incorrect. B) Windbigler’s statement is correct; Alvarez’s statement is incorrect. C) Windbigler’s statement is correct; Alvarez’s statement is correct. Correct answer is B) Windbigler’s statement is correct. The current rate is defined as the market rate in effect at the balance sheet date. Hedging activities do not affect the rate, but affect the gain or loss from changes in exchange rates. Alvarez’s statement is incorrect. The correct exchange rate to use for monetary assets and liabilities when applying the temporal method is the current rate. | 
发表于 2009-1-17 14:46
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