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Please answer the following discussion and add each references Acc401 -8 I- Analyze the underlying conceptual differences between the temporal method of translation and the current rate method...

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Please answer the following discussion and add each references








Acc401 -8



I-





  • Analyze the underlying conceptual differences between the temporal method of translation and the current rate method of translation when determining why balance sheet exposure differs under the two methods. Which method do you see providing the most minor balance sheet exposure and why? Provide a rationale for your selection.



  • Analyze the fundamental differences between remeasurement and the translation approach when preparing a foreign currency financial statement for a company of your choice. Next, determine one to two (1-2) situations when remeasurement is most appropriate. Provide support for your position.



Reference








Acc308-8










  • Identify a company that has suffered from a cybercrime within the last five years. Describe the crime and its ramifications.



  • Provide details on which IT- and AIS-specific components failed, allowing the cybercrime to take place. Then, discuss the audit procedure that eventually uncovered the cybercrime.



  • Reference








Acc306-8



QuickBooks is known as an accounting program for companies, but it also is a customer and vendor management program!





  • How can an accountant use QuickBooks to keep track of a company's customers, vendors, orders, sales, and receivables?



  • What are the limitations of working with QuickBooks as a customer and vendor management program?



  • Reference

Answered 1 days After May 06, 2024

Solution

Nitish Lath answered on May 08 2024
6 Votes
Acc 401-8
Different methods of translation
There are two methods of translation of foreign subsidiary balances into reporting cu
ency of parent company i.e. cu
ent rate method and temporal method. Under temporal method, two different approaches or exchange rates are followed for translation of accounts. For Monetary items such as receivables, cash and bank balances the cu
ent exchange rate is used whereas for non-monetary items such as inventory and fixed assets historical exchange rate is used. Under temporal method, the balance sheet items are more sensitive to foreign exchange rate fluctuations because the non-monetary items are recorded at historical rates and due to change in exchange rates the items may not reflect true value of assets and liabilities in reporting cu
ency. Under cu
ent rate method of translation, all assets and liabilities are converted at cu
ent exchange rate. Under this method, the balance sheet items are very less exposure to exchange rate fluctuations because all the items are recorded at cu
ent value. This method also represent true value of assets and liabilities and also reduces potential distortions caused due to change in exchange rates.
The cu
ent method is a more accurate method for translation of balances because it covert the value of all assets and liabilities at cu
ent value. Further, the choice of method is also dependent upon various other factors such as regulatory aspects, nature of business and exposure of risk of cu
ency exchange fluctuation and we recommend to use cu
ent method of...
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