This formatted MS Word file contains examples of foreign currency translations for Brisco Bricks and its foreign supplier, Bolivian Clay.© BrainMass Inc. brainmass.com October 16, 2018, 8:33 pm ad1c9bdddf
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Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows:
1. For what amount should Brisco's Accounts Payable be credited on May 8?
Since the spot (closing) price of the foreign currency was $1.25 on May 8th when the purchase was made, the entry to Brisco's Accounts Payable account should be $2,500,000 (2,000,000 (fc) x $1.25).
2.How much Foreign Exchange Gain or Loss should Brisco record on May ...
This formatted MS Word file contains examples of foreign currency translations.
International Financial Management: Example Problem
Compare and contrast the four currency translation methods. Which two methods are used by FASB 52? Be sure to discuss the two step method used in FASB 52 and how highly inflationary economies (around 100% inflation in a three year period) are handled. Discuss how Japan and Germany approach the translation of currency.View Full Posting Details