问题如下:
6. Based on the information available and Ruiz’s expectations regarding exchange rates, if the hryvnia is chosen as the Ukraine subsidiary’s functional currency, Eurexim will most likely report:
选项:
A.an addition to the cumulative translation adjustment.
B.a translation gain or loss as a component of net income.
C.a subtraction from the cumulative translation adjustment.
解释:
C is correct.
When the foreign currency is chosen as the functional currency, the current rate method must be used and all gains or losses from translation are reported as a cumulative translation adjustment to shareholder equity. When the foreign currency decreases in value (weakens), the current rate method results in a negative translation adjustment in stockholders’ equity.
考点:exposure to translation
解析:
分析exposure时,外币和本币是站在母公司的角度,因为exposure都是针对于母公司股东的风险敞口分析,所以对母公司来说,子公司的当地货币就是外币。
如果子公司所在地的货币是functional currency , 此时functional currency= local currency, 应选择current method 。在current method 下汇兑损益计入OCI,就是CTA.
在current method下,exposure= equity , 一般都是大于0的 , 子公司货币贬值 , 转换后的金额更小 , 所以是亏损 , 即 a subtraction from the cumulative translation adjustment.
因此,选项C正确。
老师 ,这道题 为什么B是错的?是因为CTA在equity里调整,不在net income里调整吗?