Wahl Company’s consolidated financial statements
Wahl Company’s consolidated financial statements include two wholly owned subsidiaries. One subsidiary is located in Australia and the other in France. The functional currency for the Australian subsidiary is the U.S. dollar. The European euro is the functional currency for the subsidiary located in France. Discuss:
1.The objectives of translating a foreign subsidiary’s currency
2.How gains and losses arising from the translation or measurement of each subsidiary’s financial statements are measured
3.The indicators listed in FASB 52 that identify economic factors to be considered, individually and collectively, in determining the functional currency for a particular subsidiary
A multinational corporation based in the U.S. has divided its operations into several segments. The financial information for each segment is in this spreadsheet.
Review the information and discuss which segments are reportable and why.
Segment Number | 1 | 2 | 3 | 4 | 5 | 6 | Totals | |
Revenues |
|
|
|
|
|
|
| |
| Sales-External | $68,443 | $228,517 | $105,279 | $328,131 | $244,521 | $297,223 | $1,272,114 |
| Sales-Internal | $60,747 | $14,680 | $48,313 | $29,538 | $77,317 | $41,023 | $271,618 |
| Interest Income | $2,975 | $3,234 | $4,373 | $4,878 | $1,412 | $2,780 | $19,652 |
Total Revenues | $132,165 | $246,431 | $157,965 | $362,547 | $323,250 | $341,026 | $1,563,384 | |
Expenses |
|
|
|
|
|
|
| |
| Cost of Sales | $7,496 | $1,780 | $7,465 | $4,988 | $12,901 | $8,138 | $42,768 |
| Marketing | $5,959 | $2,488 | $3,704 | $4,207 | $6,774 | $8,042 | $31,174 |
| Interest Expense | $2,152 | $519 | $1,770 | $1,048 | $3,198 | $1,756 | $10,443 |
Total Expenses | $15,607 | $4,787 | $12,939 | $10,243 | $22,873 | $17,936 | $84,385 | |
| Segment Profit | $116,558 | $241,644 | $145,026 | $352,304 | $300,377 | $323,090 | $1,478,999 |
Assets |
| $136,886 | $228,517 | $210,558 | $656,262 | $489,042 | $297,223 | $2,018,488 |
11 years ago
Purchase the answer to view it
accounting12.doc
