Question
I have a hard time with this case Research Case 1- Foreign Currency translation and hedging activities. Many companies make annual reports available on their
I have a hard time with this case Research Case 1- Foreign Currency translation and hedging activities. Many companies make annual reports available on their corporate internet home page. Annual reports also can be accessed through the SEC's EDGAR system at www.sec.gov. ( Under filing type, search for 10-K) Access the most recent annual report for a US based multinational company with which you are familiar.
Note: The Company that I want to use would be Microsoft Corporation ( https://www.sec.gov/Archives/edgar/data/789019/000156459017014900/msft-10k_20170630.htm)
Required a)Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging. b)Determine whether the company's foreign operations have a predominant functional currency. c)Determine the amount of remeasurement gain or loss, if any, reported in net income in each of the three most recent years. d)Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. e)Determine whether the company hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used.
Please let me know if you can't.
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