Question
Glasgow Ltd has a foreign subsidiary Capetown Ltd. Capetown Ltd acquired a machinery asset during the current year. For the accounting method indicated below, select
Glasgow Ltd has a foreign subsidiary Capetown Ltd. Capetown Ltd acquired a machinery asset during the current year. For the accounting method indicated below, select the correct rate to translate this item to English Pounds on the balance sheet:
The current rate method:
Choose from below:
1. The average spot rate of the current financial year
2. The spot rate at the start of the current financial year
3. The spot rate at the time of the investing in the foreign operation
4. The spot rate at the end of the current financial year
5. The spot rate at the transaction date
The Temporal method:
Choose from below:
1. The average spot rate of the current financial year
2. The spot rate at the start of the current financial year
3. The spot rate at the time of the investing in the foreign operation
4. The spot rate at the end of the current financial year
5. The spot rate at the transaction date
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