答案和详解如下： Q83. As Heltzel is translating the balance sheet and income statement, which of the following are closest to the values Heltzel determines for revenues and accounts payable for 2005? Revenues Accounts Payable
A) £44,118 £3,529 B) £41,667 £3,333 C) £44,118 £3,333 Correct answer is C) Since the British pound is the functional currency, the temporal method should be used. Under both the all-current and temporal methods, revenues are translated at the average rate. The value Heltzel will calculate for revenues is $75,000 / $1.70 = £44,118. Also, under both the temporal and all-current methods, monetary assets and liabilities are calculated using the current exchange rate. The value Heltzel will calculate for accounts payable will be $6,000 / $1.80 = £3,333. Q84. Using the appropriate translation method, what will be the translation gain or loss Heltzel will record, and which of the financial statements will he record it on? Translation Gain/Loss Financial Statement
A) −$392.14 Balance sheet B) −$392.14 Income statement C) +$1,518.06 Income statement Correct answer is C) Since the British pound is the functional currency, the temporal method should be used. Under the temporal method, the translation gain/loss is reported on the income statement. When using the temporal method, only cash, accounts receivable, accounts payable, current debt, and long-term debt are translated at the current rate. This means that exposure under the temporal method is: (cash + accounts receivable) − (accounts payable + current debt + long-term debt) The currency translation adjustment (CTA) is calculated as the sum of the flow effect and holding effect. Flow effect (in $) = change in exposure (in LC) × (ending rate − average rate) Holding gain/loss effect (in $) = beginning exposure (in LC) × (ending rate − beginning rate) Going back to our data in the example: Beginning exposure = (1,200 + 6,500) − (5,000 + 1,500 + 25,000) = −23,800 Ending exposure = (1,400 + 9,900) − (6,000 + 1,500 + 23,500) = −19,700 Change in exposure = −19,700 − (−23,800) = 4,100 Flow effect (in $) = 4,100 × [(1 / 1.80) − (1 / 1.70)] = 4,100 × [0.5556 − 0.5882] = −133.66 Holding gain/loss effect (in $) = −23,800 × [(1 / 1.80) − (1 / 1.60)] = −23,800 × [0.5556 − 0.6250] = 1,651.72 Translation loss (in $) = flow effect + holding gain/loss effect = −133.66 + 1,651.72 = $1,518.06. | 
发表于 2009-1-20 13:14
| 
