When making a retrospective adjustment, all of the following steps are included except
A) computing the cumulative effect of the new accounting principle as of the beginning of the first period presented.
B) adjusting the current period net income for the cumulative effect of the change.
C) adjusting the carrying value of impacted assets and liabilities.
D) disclose the nature and reason for the change in accounting principle, including the new principle is preferable.
B
You might also like to view...
Transaction exposure problem. Suppose firm ABC enters into a transaction to sell €800,000 worth of equipment to a French firm when the exchange rate is $1.35/€. The French firm will pay in euros in 60 days. At the time of payment, the exchange rate is $1.28/€. What are the consequences of this transaction of ABC’s financial statements?
What will be an ideal response?
Global marketers are under constant pressure to simplify distribution channels in order to
A. meet trade agreement guidelines. B. improve promotion efficiency. C. reduce costs. D. afford tariffs. E. reduce trade deficits.
Although rarely acknowledged by the firms themselves, selective hedging is essentially speculation
Indicate whether the statement is true or false.
The least liquid stock markets as identified by the authors offer little liquidity for their own domestic firms, and are of little value to foreign firms
Indicate whether the statement is true or false.