Match the descriptions on the left with the terms on the right. Terms may be used once, more than once, or not at all.
Descriptions of Terms
1. The group that has attempted to harmonize the world's many different accounting methods.
2. The currency of the primary economic environment in which the entity operates.
3. The functional currency for a U.S. subsidiary located in a country with > 100 percent inflation over the last three years.
4. Translation of all assets and liabilities of a foreign subsidiary using the foreign exchange rate at the balance sheet date.
5. Restatement of the fixed assets and inventories of a foreign subsidiary into U.S. dollars using historical exchange rates.
6. Inclusion of this gain or loss on the U.S. company's income statement as part of net income.
7. The item that balances the debits and credits of the foreign subsidiary's adjusted trial balance in U.S. dollars, assuming the functional currency is the currency of the foreign subsidiary's country.
8. The item that balances the debits and credits of the foreign subsidiary's adjusted trial balance in U.S. dollars, assuming the functional currency is the U.S. dollar.
9. Translation of the income statement accounts of a foreign subsidiary using the average exchange rate for the year.
10. Restatement of depreciation expense and cost of goods sold of a foreign subsidiary using historical exchange rates.
11. An analysis of a foreign subsidiary's cash flows, sales prices, sales markets, expenses, and financing.
12. The periodic change in this item reported as a component of other comprehensive income.

Terms

A. Financial Accounting
Standards Board
B. Remeasurement gain or loss
C. Translation adjustment
D. Current rate method
E. Remeasurement method
F. U.S. dollar
G. Functional currency
H. International Accounting
Standards Board
I. International Managerial
Accounting Society
J. Functional currency indicators
K. Historical rate method
L. Cumulative transaction gain or loss