Match the items in the left-hand column with the descriptions/explanations in the right-hand column. 1. Remeasurement gain

Match the items in the left-hand column with the descriptions/explanations in the right-hand column.

Transcribed Image Text:

1. Remeasurement gain or loss 2. Translation adjustment 3. Current rate method 1. Remeasurement method 5. U. S. dollar 3. Functional currency A. The currency of the primary economic environment in which the entity operates. B. The functional currency for a U. S. subsidiary located in a country with >100 percent inflation over the last three years. C. Translation of all assets and liabilities of a foreign subsidiary using the foreign exchange rate at the balance sheet date. 7. Functional currency indicators D. Restatement of the fixed assets of a foreign subsidiary into U.S. 3. Transaction gain or loss dollars using historical exchange rates. E. Inclusion of this gain or loss on the U. S. company's income statement as part of net income. F. 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. G. 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. H. Restatement of depreciation expense and cost of goods sold of a foreign subsidiary using historical exchange rates. I. An analysis of a foreign subsidiary' s cash flows, sales prices, sales markets, expenses, and financing. J. The periodic change in this item reported as a component of other comprehensive income.