Chapter 8

closely integrated

Current U.S. GAAP recognizes that some foreign entities are _______________________ with their parent company.

monetary

In determining the re-measurement gain or loss that results when the temporal method of translation is used the beginning net ________________________ asset or liability position is translated using the beginning-of-the-year exchange rate.

current and historical

The accounts of a foreign subsidiary are translated into the parent's currency using a combination of _________________________ exchange rates.

functional currency

The primary currency of a foreign entity's operating environment is Its _________________________________.

historical costs

When an asset carried at historical cost on a foreign currency balance sheet is remeasured into parent company currency using the temporal method the resulting parent currency balance for that asset represents the __________________________ of the asset in parent currency.

positive translation adjustment

Translating a foreign currency asset at the current exchange rate when the foreign currency has appreciated gives rise to a ______________________________.

dividends are declared

In determining the translation adjustment when the current rate method is used, dividends declared by the foreign entity in the current year are translated using the exchange rate on the date the __________________________________.

reporting currency

The U.S. dollar is the ___________________________ for a U.S. -based company.

current exchange rate

The ________________________ is the exchange rate that exists at the balance sheet date.

current exchange rate

Under the current rate method of translation, all assets are translated at the ___________________________.

average

Under the current rate method of translation, expenses and revenues incurred/generated evenly throughout the year are translated at the ____________________ exchange rate.

average

Under the current rate method of translation, revenues, and expenses generally are translated at the ___________________ exchange rate.

accumulated other comprehensive income

When the current rate method of translation is appropriate, the resulting translation adjustment must be reported in ______________________________ on the balance sheet.

remeasured

When the temporal method is used, the financial statement items of a foreign entity are said to be ___________________ into parent company currency.