问题如下:
Ulta Beauty is a US-BASED corporation that sells cosmetic. Its Canadian subsidiary, Cosmetic firm, operates solely in Canada. It was created on 31 December 2015, and Cosmetic firm use US dollar as its functional currency. Assume fixed assets were bought when the company was created.
The financial statement information for the years ended 2015 and 2016 on the following table:
Please calculate the translated value of retained earnings of Cosmetic firm on 31 December 2016:
选项:
A.$20.15
B.$15.20
C.$17.99
解释:
C is correct.
考点:Temporal method。
解析:当母公司用的货币和functional currency是一样的时候,我们使用temporal method来转换子公司的财报。
在temporal method方法下,MA和ML用的是current rate来转换,NMA和NML用的是历史汇率来转换。
因为asset和liability都要区分monetary or non-monetary,所以equity是一个混合项,需要R/E来调平.
具体计算见下表:
这里需要注意:
不能直接用期末的R.E乘以汇率进行计算,因为equity是一个混合项,R.E没有特定的汇率进行转换。所以只能将资产负债表其他各项依照汇率转换之后,再算出R.E的金额。这里17.99=asset-liability-common stock=542.59-152.28-256.62-115.7
common stock是按照capital算historical rate吗