_____ A parent owns a foreign subsidiary that has as its functional currency the local currency. During 2006, the foreign subsidiary had (a) a net asset position of 500,000 LCUs and (b) a net monetary asset position of 400,000 LCUs. Which of the following gains or losses on hedging transactions can be charged or credited to the parent's OCI-Translation Adjustment account?

Question

_____ A parent owns a foreign subsidiary that has as its functional currency the local currency. During 2006, the foreign subsidiary had (a) a net asset position of 500,000 LCUs and (b) a net monetary asset position of 400,000 LCUs. Which of the following gains or losses on hedging transactions can be charged or credited to the parent's OCI-Translation Adjustment account?
_____ A parent owns a foreign subsidiary that has as its functional currency the local currency. During 2006, the foreign subsidiary had (a) a net asset position of 500,000 LCUs and (b) a net monetary asset position of 400,000 LCUs. Which of the following gains or losses on hedging transactions can be charged or credited to the parent's OCI-Translation Adjustment account?

Quizplus · Accepted Answer

The Answer of _____ A parent owns a foreign subsidiary that has as its functional currency the local currency. During 2006, the foreign subsidiary had (a) a net asset position of 500,000 LCUs and (b) a net monetary asset position of 400,000 LCUs. Which of the following gains or losses on hedging transactions can be charged or credited to the parent's OCI-Translation Adjustment account?

_____ a Parent Owns a Foreign Subsidiary That Has as Its