Olin Ltd Is a Foreign Subsidiary of Rainier Ltd

question 22

Multiple Choice

Olin Ltd. is a foreign subsidiary of Rainier Ltd., a Canadian corporation. Rainier translated Olin's financial statements to Canadian dollars using the temporal method, which resulted in a cumulative translation gain of $15,500. How should the $15,500 be treated on Rainier's consolidated financial statements?

• A)The $15,500 should be disclosed in the opening consolidated retained earnings.
• B)The $15,500 should be reported on the consolidated SCI.
• C)The part of the $15,500 that relates to the prior years should be included in the opening consolidated retained earnings and the balance should be reported on the consolidated SCI.
• D)The $15,500 should only be disclosed in the notes to the consolidated financial statements.

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Definitions:

Cinnamon Rolls

Sweet baked goods made from dough that is rolled around a filling of cinnamon, sugar, and sometimes raisins or nuts, then sliced and baked.

Smell

A sense that detects chemical substances in the environment, allowing organisms to perceive odors and fragrances through specialized sensory cells.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Meat Powder

A substance used in classical conditioning experiments as a stimulus, notably in Pavlov's research with dogs.