A foreign subsidiary of Decker Corporation has certain balance sheet accounts on December 31, 20x9.

Information relating to these accounts in Philippine pesos as follows:

Translated at

Current Rates Historical Rates

Marketable securities at cost P 65,000 P 75,000

Inventories, at average cost 500,000 550,000

Patents 80,000 85,000

Totals P 645,000 P 710,000

1. What total amount should be included in Decker's December 31, 20x9 consolidated balance sheet for the

above accounts if subsidiary's foreign operations operates independently in economic and financial

matters (or not integral to the operations of the parent):

Certain balance sheet accounts of a foreign (US) subsidiary of Kanchengjunga Company at December

31, 20x9, have been remeasured into Philippine pesos as follows:

Remeasured at

Current Rates Historical Rates

Accounts receivable, current P 200,000 P 220,000

Accounts receivable, long-term 100,000 110,000

Prepaid Insurance 50,000 55,000

Goodwill 80,000 85,000

Totals P 430,000 P 470,000

What total amount should be included in Kanchengjunga's December 31, 20x9 consolidated balance

sheet for the above accounts if subsidiary's foreign operation is integral to parent's operations?

Certain balance sheet accounts of a foreign subsidiary of Fuji Company at December 31, 20x9, have been

converted into Philippine pesos as follows:

Current Rates Historical Rates

Notes receivable, long term P 240,000 P 200,000

Prepaid interest 10,000 8,000

Prepaid rent 85,000 80,000

Patent 150,000 170,000

Marketable securities, at cost 120,000 130,000

Trademarks 50,000 55,000

Goodwill 200,000 210,000

Marketable securities, at market value 110,000 90,000

Inventories 90,000 95,000

Deferred charges 88,000 85,000

Accounts receivable 15,000 20,000

Cash 100,000 110,000

Customer list 60,000 70,000

Buildings (net) 400,000 420,000

Totals P1,718,000 P1,743,000

3. Assume that the LCU (local currency unit) is the subsidiary's functional currency. What balances does a

consolidated balance sheet report as of December 31, 20x9?

4. Assume that the Philippine peso is the subsidiary's functional currency. What balances does a

consolidated balance sheet report as of December 31, 2019?