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NEW QUESTION: 1
ある会社が、一度に1つずつ発行される36個の電球を含むケースを注文して受け取ります。この関係のために何が作成されますか?
A. 発行タイプ
B. 発行ユニット
C. 乗数
D. 変換
Answer: B
Explanation:
Explanation
You order light bulbs in bulk and the unit of measure is a case, with a quantity received of 36. However, when you issue the item, you issue it one at a time. In this case, you can define a measure unit of CASE and another measure unit of EACH. You define a conversion ratio from CASE to EACH with a factor of 36. When you receive an order of bulbs into a storeroom, the received order unit of one CASE is converted into the storeroom issue unit of 36 EACH.

NEW QUESTION: 2
Gary Smith, CFA, has been hired lo analyze a specialty tool and machinery manufacturer, Whitmore Corporation (WMC). WMC is a leading producer of specialty machinery in the United States. At the end of
2006, WMC purchased York Tool Company (YTC), an Australian firm in a similar line of business. YTC has partially integrated its marketing functions within WMC but still maintains control of its operations and secures its own financing. Following is a summary of the income statement and balance sheet for YTC (in millions of Australian dollars - AUD) for the past three years as well as exchange rate data over the same period.

Smith has discovered that WMC has a small subsidiary in Ukraine. The Subsidiary follows IAS accounting rules and uses FIFO inventory accounting. The Ukrainian subsidiary was acquired ten years ago and has been fully integrated into WMC's operations. WMC obtains funding for the subsidiary whenever the company finds profitable investments within Ukraine or surrounding countries. According to forecasts from economists, the Ukrainian currency is expected to depreciate relative to the U.S. dollar over the next few years. Local currency prices are forecasted to remain stable, however.
One of the managers at WMC asks Smith to analyze a third subsidiary located in India. The manager has explained that real interest rates in India over the last three years have been 2.00%, 2.50%, and 3.00%, respectively, while nominal interest rates have been 34.64%, 29.15%, and 25.66%, respectively. Smith requests more time to analyze the Indian subsidiary.
Which of the following statements related to the consolidation of V/MC's Indian subsidiary is least likely correct?
A. WMC can reduce potential translation losses from the Indian subsidiary by issuing debt denominated in
B. The Indian economic environment meets the criteria to be classified as a hyperinflationary economy.
C. IAS standards would allow WMC to translate the inflation-indexed value of nonmonetary assets of the Indian subsidiary at the current exchange rate.
D. S. currency and purchasing

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\KGd assets for the subsidiary.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
U.S. accounting standards define a hyperinflationary economy as one in which the three-year cumulative inflation rate exceeds 100%. The Indian economy can be characterized as hyperinflationary. The inflation rate over the past three years can be calculated as follows:
year 1 inflation = [(I + 0.3464) / (1 + 0.020)] - 1 = 32%year 2 inflation = [(I + 0.2915) / (1 + 0.025)1 - 1
26%
year 3 inflation = [(1 + 0.2566) / (1 + 0.030)] - 1 = 22%
cumulative three-year inflation = (1.32)(1.26)(1.22) - 1 = 103%
U.S. accounting standards allow the use of the temporal method, with the functional currency being the parents reporting currency, when a foreign subsidiary is operating in a hyperinflationary environment. IAS accounting standards allow the parent to translate an inflation-adjusted value of the nonmonetary assets and liabilities of the foreign subsidiary at the current inflation rate, removing most of the effects of high inflation on the value of the nonmonetary assets and liabilities in the reporting currency. In a hyperinflationary environment, the parent company can reduce translation losses by reducing its net monetary assets or increasing its net monetary liabilities. In order to do this, the parent should issue debt denominated in the subsidiary's local currency and invest the proceeds in fixed assets for the subsidiary to use in its operations. (Study Session 6, LOS 23-0