20E Wrong Answers

Question 0

During the SIMs what are the exchange rates for retained earnings, OCI and total liabilities and stockholder’s equity?

Answer 0

There is no exchange rate

Question 1

Under Translation with low inflation how are assets valued?

2) Liabilities?

Answer 1

Assets valued at current rate at year end

Liabilities valued at current rate at year end

Question 2

What happens to other comprehensive income on a balance sheet translation, when its balance in the foreign currency = $0?

Answer 2

It’s value in US dollars is the difference between total assets
And total liabilities + stockholder’s equity without OCI

Question 3

Translation adjustments resulting from the translation of foreign currency statements should be reported…3

Answer 3

1 Separately as a component of other comprehensive income,

2 accumulated other comprehensive income

3 stockholder’s equity

Question 4

Gains an losses of foreign transactions, designated as economic hedges of a net investment in a foreign entity should be included in…

Answer 4

Other comprehensive income

Question 5

Both the translation loss and the exchange gain are to be reported as…2

Answer 5

Other comprehensive income

And accumulated other comprehensive income in the stockholder’s equity section of the balance sheet