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.