Kuis A3 after mid

1. Where is the remeasurement gain or loss shown in the consolidated financial

statements?
2. When the functional currency is the foreign affiliate’s local currency, why are the
stockholders’ equity accounts translated at historical exchange rates? How is retained
earnings computed?
3. How is revenue recognized on an interim basis?
4. Describe the basic rules for computing cost of goods sold and inventory on an interim
basis. In what circumstances are estimates permitted to determine costs?
5. Explain the treatment of the following items for interim financial statements :
Advertising and Seasonal revenue