Identify 3 FASB 52 factors and explain why the sentences you have identified relates to the 3 FASB 52 factors

9.22 IDENTIFYING THE FUNCTIONAL CURRENCY. Electronic Com- puter Systems (ECS) designs, manufactures, sells, and services networked computer sys- tems, associated peripheral equipment, and related network, communications, and soft- ware products. Exhibit 9.20 presents geographical segment data. ECS conducts sales and marketing operations outside the United States principally through sales subsidiaries in Canada, Europe, Central and South America, and the Far East; by direct sales from the parent cor- poration; and through various representative and distributorship arrangements. The com- pany's international manufacturing operations include plants in Canada, the Far East, and Europe. These manufacturing plants sell their output to the company's sales subsidiaries, the parent corporation, or other manufacturing plants for further processing. EXHIBIT 9.20 Electronic Computer Systems Geographical Segment Data amounts in thousands) Problem 9.223 Year) Year 4 Years Reus 54472,195 S. Customers Intercompany Total Earope Customers Intercompany Focal Canada. Far East, Americas Customers $5.826.534 52.259745 82.549 $2.342.392 $ 858.419 577,934 $1.436,353 12.014,922) $7.590.357 55,01666 55.810-993 1.921 043 2017.928 56957549 $7808 525 53.252.480 5.4221.631 114.582 53.167,064 $4.159 300 51.120.356 $ 1443.217 659.204 912.785 $1.229.560 $.2356.002 (2.694.829 3068383 $9.389.444 SI1415.446 Intercompany Total Eliminations Net Revenue Income United States Europe S 342,657 405,636 207.187 (126,771 S 828.709 116,899 (88.079 $ 857.529 5 758.795 634,543 278,359 459,690 $1,612,007 122,149 (45.203 $1.688,953 5 512.754 770,135 390780 38.675 $ 1.635.000 143,665 (37.820) $ 1,740,845 Canada, Far East, Americas Eliminations Operating Income .... Interest Income Interest Expense Income before Income Taxes Assets United States Europe Canada, Far East, Americas Corporate Assets (temporary cash investments) Eliminations Total Assets $3,911,491 1.817,584 815.067 2,035,557 (1,406,373 $7,173,326 $4,627.838 2.246,333 843,067 1,979,470 (1.289,322 $8,407,386 $ 5.245439 3,093,818 1.293,906 2.057528 (1.579.135 $10,111,556 ECS accounts for intercompany transfers between geographic areas at prices represen- tative of unaffiliated-party transactions Sales to unaffiliated customers outside the United States, including U.S. export sales were $5,729,879,000 for Year 5, $4,412,527,000 for Year 4, and $3,179,143,000 for Year 3, which represented 50 percent, 47 percent, and 42 percent, respectively, of total operating revenues. The international subsidiaries have reinvested substantially all of their earnings Chapter 9 Intercorporal to support operations. These accumulated retained earnings, before elimination of inter- company transactions, aggregated $2,793,239,000 at the end of Year 5, $2,070,337,000 a currency fluctuations on operations and the asset and liability positions of foreign sub- The company enters into forward exchange contracts to reduce the impact of foreign sidiaries. The gains and losses on these contracts increase or decrease net income in the same period as the related revenues and expenses, and for assets and liabilities, in the the end of Year 4, and $1,473,081,000 at the end of Year 3. period in which the exchange rate changes