Study set 1

Question 1

Translating when Local and functional currency are same. Weighted average affect

Answer 1

Weighted average affect income statement items

Question 2

Gain or loss for remeasurement goes to

Answer 2

G/L for remeasurement goes to the INcome statement

Question 3

Gain or loss on Translation goes to

Answer 3

Balance sheet OCI

Question 4

Account for FV hedge Company must document

Answer 4

1. relationship with hedge and hedge risk

2. Intends to measure the effectiveness of the hedge