Where Is the Translation Adjustment Reported in the Parent Company's

question 83

Multiple Choice

Where is the translation adjustment reported in the parent company's financial statements?

• A) Net loss in the income statement.
• B) Cumulative translation adjustment as a deferred asset.
• C) Cumulative translation adjustment as a deferred liability.
• D) Accumulated other comprehensive income.
• E) Retained earnings.

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Definitions:

Breach

A violation or infraction of a law, agreement, or set of rules.

Unforeseeable Loss

Losses that could not be predicted or expected under normal circumstances, often excluding them from contractual liability.

Condition Precedent

A specific condition or event that must occur before a contract becomes effective or before a party is obligated to fulfill their part of the contract.

Ended by Agreement

A situation where a contract or arrangement is terminated through mutual consent of all parties involved.