The Functional Currency of Nash,Inc

question 67

Multiple Choice

The functional currency of Nash,Inc.'s subsidiary is the French franc.Nash borrowed French francs as a partial hedge of its investment in the subsidiary.In preparing consolidated financial statements,Nash's translation loss on its investment in the subsidiary exceeded its exchange gain on the borrowing.How should the effects of the loss and gain be reported in Nash's consolidated financial statements?

• A) The translation loss less the exchange gain is reported separately as other comprehensive income.
• B) The translation loss less the exchange gain is reported in the income statement.
• C) The translation loss is reported separately in the stockholders' equity section of the balance sheet and the exchange gain is reported in the income statement.
• D) The translation loss is reported in the income statement and the exchange gain is reported separately in the stockholders' equity section of the balance sheet.

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Definitions:

Discrimination Perception

The awareness or viewpoint that a person or group of people are being treated unfairly or prejudicially based on certain characteristics or attributes.

Employee Consent

The agreement by employees to terms, conditions, or processes in the workplace, often regarding data handling or organizational changes.

Romantic Relationships

Interpersonal relationships characterized by affection, love, or attraction between colleagues that can impact workplace dynamics or policies.

Disclose Existence

The act of making a fact or piece of information known, especially something that was previously hidden or unknown.