【導(dǎo)讀】rates.Economicexposure. economicexposure.Economicexposure–Representsalonger-termriskto. Temporalmethod. Currentratemethod

　　

【正文】 tr ans l ati on of s tatem ent.Equi ty ear ni ngs ( 90% x 6,900 ) 6210O ther c om pr ehe ns i v e i nc om e ( 90% x 13,74 0) 12366 Inv es tm ent i n C ontr ol ada 18576T o r ec or d the am or ti z ati on an d ex c han ge ad j us tm ent onthe ac qui s i ti on dif f er enti al . 48 Example – SelfSustaining Operations, Including Both NCI and Acquisition Differential P RE P A RA T IO N O F CO NS O L IDA T E D F INA NCIA L S T A T E M E NT S Y E A R 2( se lf sust ainin g )S T A T E M E NT O F NE T INCO M E A ND CO M P RE HE NS IV E INCO M ES tarm on t Cont r ol ad a S tarm on tCons ol i da tedS al es 3,000,000$ 1,035,000$ 4,035,000$ E qu i ty ea r ni ng s 24,840$ $ $ 3,024,840$ 1,035,000$ 4,035,000$ Cos t o f go od s pu r c ha s ed 2,520,000$ 851,000$ 3,371,000$ Chan ge i n i nv en tory 20,000 $ 46,000 $ 66,000 $ Deprec i ati on 20,000$ 11,500$ 31,500$ B on d i nte r es t 30,000$ 5,175$ 35,175$ O the r 200,000$ 178,825$ 378,825$ P ate nt am orti z ati on $ $ 6,900$ 2,750,000$ 1,000,500$ 3,757,400$ In di v i du al ne t i nc om es 274,840$ 34,500$ Net i nc om e 277,600$ O the r c om prehen s i v e i nc om e For ei gn c urr en c y tr an s l ati on ad j us tm en ts 58,536 $ 51,300 $ 65,040 $ Com prehen s i v e i nc om e 216,304$ 16,800 $ 212,560$ Net i nc om e a ttrib uta bl e t o: S ha r eh ol de r s of S tarm on t 274,840$ Non c on tr ol l i ng i nte r es t 2,760$ 277,600$ Com prehen s i v e i nc om e a ttrib uta bl e t o: S ha r eh ol de r s of S tarm on t 216,304$ Non c on tr ol l i ng i nte r es t 3,744 $ 212,560$ 49 Example – SelfSustaining Operations, Including Both NCI and Acquisition Differential RE T A INE D E A RNING S S tarm on t Cont r ol ad a S tarm on tCons ol i da tedB al an c e beg i nn i ng 336,000$ 64,000$ 336,000$ Net i nc om e 274,840$ 34,500$ 274,840$ 610,840$ 98,500$ 610,840$ Di v i de nd s 50,000$ 10,400$ 50,000$ B al an c e end 560,840$ 88,100$ 560,840$ BA L A NCE S HE E T SCas h 55,440$ 10,400$ 65,840$ A c c ou nts r ec ei v ab l e 290,400$ 41,600$ 332,000$ Inv en tori es 220,000$ 166,400$ 386,400$ P l an t a nd eq ui pm en t 280,000$ 83,200$ 363,200$ Inv es tm en t i n Co ntrol ad a (equ i ty ) 256,464$ $ $ P ate nt $ $ 56,160$ 1,102,304$ 301,600$ 1,203,600$ Cur r en t l i ab i l i ti es 100,000$ 26,000$ 126,000$ B on ds pa y ab l e 300,000$ 46,800$ 346,800$ Com m on s ha r es 200,000$ 192,000$ 200,000$ Reta i ne d e arni ng s 560,840$ 88,100$ 560,840$ A c c um ul ate d t r an s l ati on ad j us tm en ts 58,536 $ 51,300 $ 58,536 $ Nonc on tr ol l i ng i nte r es t $ $ 28,496$ 1,102,304$ 301,600$ 1,203,600$ 50 Other Considerations ? Conformity to Canadian GAAP/IFRS: if foreign subsidiary financial statements are prepared under foreign GAAP they must be adjusted to Canadian GAAP/IFRS before translation and consolidation 51 Lower of Cost and Net Realizable Value ? Lower of cost and realizable value (NRV) – if the foreign currency weakens, NRV of a balance such as inventory might be lower than the item’s cost when translated into Canadian dollars, even though it might still be higher than cost in the foreign currency. In such cases, if the foreign currency strengthens at a later date and NRV translated into Canadian dollars exceeds cost the writedown can be reversed. ? Note that this is only of concern for integrated operations. Not applicable to selfsustaining operations. Why? Because all assets are translated at the closing rate regardless of whether they are carried at cost or realizable value. ? See next page for examples. 52 Lower of Cost and Net Realizable Value Example E xa mp le:c os t NRVInv en tory FC U 10,000 F CU 12,000 F CUap pl i c ab l e f /x r ate $1 .12 /FC U $0 .82 /FC UCdn. $ tr an s l ate d 11,200$ 9,840$ Com m en t: de s pi te the f ac t th at w r i tedow n n ot r eq ui r ed i n f orei gn c urr en c y f i na nc i als tat em en ts , w r i tedow n i s r eq ui r ed i n t r an s l ate d f i na nc i al s tat em en ts . A m ou nt of w r i tedow n i s eq ua l to ( $1 1,2 00 $9 ,84 0) = $1 ,36 0.E xa mp le:c os t NRVInv en tory FC U 8,0 00 FC U 6,0 00 FC Uap pl i c ab l e f /x r ate $2 .00 /FC U $2 .85 /FC UCdn. $ tr an s l ate d 16,000$ 17,100$ Com m en t: de s pi te the f ac t th at w r i tedow n o c c urr ed i n f orei gn c urr en c y f i na nc i als tat em en ts , w r i tedow n i s no t requi r ed f r om a tr an s l ate d f i na nc i al s tat em en t p ers pe c ti v e.A s s uc h, w r i tedow n w ou l d b e rev ers ed an d i nv en tory ( no w c arr i ed at c os t)w ou l d b e t r an s l ate d a t th e h i s tori c al r ate i .e. $1 6,0 00 . 53 Other Considerations ? Interpany profits – Upstream and downstream interpany profits with integrated subsidiaries