ISP Has a Wholly Owned Subsidiary in China

question 1

Multiple Choice

ISP has a wholly owned subsidiary in China. This subsidiary is self-sufficient and does not rely on ISP for financing and sales. How should foreign exchange gains on translation of the subsidiary's statements to Canadian dollars be reported on ISP's consolidated financial statements?

• A)Gains should be reported under shareholders' equity.
• B)Gains should be reported on the statement of financial position as deferred credits and amortized in a systematic and rational manner.
• C)Gains from current net assets should be credited to income, and any gains from long-term nonmonetary assets should be deferred and amortized.
• D)Gains from current monetary assets should be credited to income and any gains from long-term monetary assets should be deferred and amortized.

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Definitions:

Short-Term Memory

The part of the memory system where information is stored for a brief period of time, typically seconds to minutes.

Recovered Memory Controversy

Refers to the debate on the reliability of recollecting potentially forgotten memories of traumatic events, often years after the event occurred.

False Allegation

A claim or accusation made without factual support or is untrue, often causing unjust harm or suspicion.

Memory Retrieval

The process of recalling or accessing information stored in the brain.