Determine the main accounting assumptions underlying each currently used method ( e . g ., current rate method and temporal method ). Determine the fundamental differences in balance sheet exposure from the application of each method .
Suggest the translation method that XYZ , Inc . should use in order to minimize balance sheet exposure . Provide support for you choice .
Compare the U . S . GAAP approach to the IFRS approach of translating foreign currency financial statements . Determine the main similarities and differences between the two ( 2 ) methods of translation . Assuming one ( 1 ) of the subsidiaries of XYZ , Inc . is located in a highly inflationary country , determine the appropriate translation method under FASB and provide the theoretical justification for your response .
Use at least two ( 2 ) quality academic resources in this assignment . Note : Wikipedia and other Websites do not qualify as academic resources .
Your assignment must follow these formatting requirements :
• Be typed , double spaced , using Times New Roman font ( size 12 ), with one-inch margins on all sides ; citations and references must follow APA or school-specific format . Check with your professor for any additional instructions .
• Include a cover page containing the title of the assignment , the student ’ s name , the professor ’ s name , the course title , and the date . The cover page and the reference page are not included in the required assignment page length .
The specific course learning outcomes associated with this assignment are :
• Examine and prepare the accounting entries for intra-entity asset transactions .
• Examine the impact that specific differences between IFRS and U . S . GAAP have on financial statements .
• Explain foreign currency transactions and analyze the accounting requirements for the translation of financial statements of foreign entities .
• Use technology and information resources to research issues in advanced accounting .
• Write clearly and concisely about advanced accounting using proper writing mechanics .