Under FASB 52,when a net translation exposure exists,
A) a derivatives hedge is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
B) a money market hedge is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
C) a cumulative translation adjustment account is necessary to bring balance to the consolidated balance sheet after an exchange rate change.
D) none of the options
Correct Answer:
Verified
Q56: Salient economic factors for determining the functional
Q57: A U.S.parent firm,as result of its business
Q58: In implementing FASB 52,
A)the functional currency of
Q59: The stated objectives of FASB 52 are
A)to
Q60: The simplest of all translation methods to
Q62: With regard to foreign currency translation methods
Q63: With regard to translation exposure versus operating
Q64: Consider a U.S.-based MNC with manufacturing
Q65: If a foreign entity is only a
Q66: The source of translation exposure
A)is a mismatch
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