国际财务管理课后习题答案chapter.pdfVIP

  .    .  CHAPTER 10 MANAGEMENT OF TRANSLATION EXPOSURE CHAPTER 10 MANAGEMENT OF TRANSLATION EXPOSURE SUGGESTED ANS ERS AND SOLUTIONS TO END-OF-CHAPTER SUGGESTED ANS ERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS AND PROBLEMS QUESTIONS QUESTIONS 1. Explain the difference in the translation process between the 1. Explain the difference in the translation process between the monetary/nonmonetary method and the temporal method. monetary/nonmonetary method and the temporal method. Answer: Under the monetary/nonmonetary method, all monetary balance sheet accounts Answer: Under the monetary/nonmonetary method, all monetary balance sheet accounts of a foreign subsidiary are translated at the current exchange rate. Other balance of a foreign subsidiary are translated at the current exchange rate. Other balance sheet accounts are translated at the historical rate exchange rate in effect when the sheet accounts are translated at the historical rate exchange rate in effect when the account was first recorded. Under the temporal method, monetary accounts are account was first recorded. Under the temporal method, monetary accounts are translated at the current exchange rate. Other balance sheet accounts are also translated at the current exchange rate. Other balance sheet accounts are also translated at the current rate, if they are carried on the books at current value. translated at the current rate, if they are carried on the books at current value. If they are carried at historical value, they are translated at the rate in effect on If they are carried at historical value, they are translated at the rate in effect on the date the