【正文】 r m d e b t1 , 8 0 0 D M $600 $900 $900 $900 Co m m o n s t o c k 2 , 7 0 0 D M $900 $900 $900 $900 Re t a i n e d e a r n i n g s9 0 0 D M $700 $150 $550 $360CT A $540 T o t a l L i a b i l i t i e s a n d Eq u i t y6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 spot rate historical rate earnings 35 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 Ba l a n c e S h e e t L o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eCa s h 2 , 1 0 0 D M $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 I n v e n t o r y 1 , 5 0 0 D M $750 $500 $900 $750 N e t fi x e d a s s e t s 3 , 0 0 0 D M $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 5 0 0 T o t a l As s e t s 6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 Cu r r e n t l i a b i l i t i e s1 , 2 0 0 D M $600 $600 $600 $600 L o n g T e r m d e b t1 , 8 0 0 D M $600 $900 $900 $900 Co m m o n s t o c k 2 , 7 0 0 D M $900 $900 $900 $900 Re t a i n e d e a r n i n g s9 0 0 D M $700 $150 $550 $360CT A $540 T o t a l L i a b i l i t i e s a n d Eq u i t y6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 historical rate earnings 36 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 Ba l a n c e S h e e t L o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eCa s h 2 , 1 0 0 D M $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 I n v e n t o r y 1 , 5 0 0 D M $750 $500 $900 $750 N e t fi x e d a s s e t s 3 , 0 0 0 D M $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 5 0 0 T o t a l As s e t s 6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 Cu r r e n t l i a b i l i t i e s1 , 2 0 0 D M $600 $600 $600 $600 L o n g T e r m d e b t1 , 8 0 0 D M $600 $900 $900 $900 Co m m o n s t o c k 2 , 7 0 0 D M $900 $900 $900 $900 Re t a i n e d e a r n i n g s9 0 0 D M $700 $150 $550 $360CT A $540 T o t a l L i a b i l i t i e s a n d Eq u i t y6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 From ine statement earnings 37 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 Ba l a n c e S h e e t L o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eCa s h 2 , 1 0 0 D M $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 $ 1 , 0 5 0 I n v e n t o r y 1 , 5 0 0 D M $750 $500 $900 $750 N e t fi x e d a s s e t s 3 , 0 0 0 D M $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 5 0 0 T o t a l As s e t s 6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 Cu r r e n t l i a b i l i t i e s1 , 2 0 0 D M $600 $600 $600 $600 L o n g T e r m d e b t1 , 8 0 0 D M $600 $900 $900 $900 Co m m o n s t o c k 2 , 7 0 0 D M $900 $900 $900 $900 Re t a i n e d e a r n i n g s9 0 0 D M $700 $150 $550 $360CT A $540 T o t a l L i a b i l i t i e s a n d Eq u i t y6 , 6 0 0 D M $ 2 , 8 0 0 $ 2 , 5 5 0 $ 2 , 9 5 0 $ 3 , 3 0 0 Under the current rate method, a ―plug‖ equity account named cumulative translation adjustment makes the balance sheet balance. earnings 38 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 I n c o m e S t a t e m e n tL o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eS a l e s 1 0 , 0 0 0 D M $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0CO G S 7 , 5 0 0 D M $ 3 , 0 0 0 $ 2 , 5 0 0 $ 3 , 0 0 0 $ 3 , 0 0 0D e p r e c i a t i o n 1 , 0 0 0 D M $333 $333 $333 $400N e t o p e r a t i n g i n c o m e 1 , 5 0 0 D M $667 $ 1 , 1 6 7 $667 $600I n c o m e t a x (4 0 % ) 6 0 0 D M $267 $467 $267 $240P r o fi t a ft e r t a x 9 0 0 D M $400 $700 $400 $360$300 $ 5 5 0 $150N e t i n c o m e 9 0 0 D M $700 $150 $550 $360D i v i d e n d s 0 D M $0 $0 $0 $0Ad d i t i o n t o Re t a i n e d Ea r n i n g s 9 0 0 D M $700 $150 $550 $360F o r e i g n e x c h a n g e g a i n (l o s s )Sales translate at average exchange rate over the period, = $1 39 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 I n c o m e S t a t e m e n tL o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eS a l e s 1 0 , 0 0 0 D M $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0CO G S 7 , 5 0 0 D M $ 3 , 0 0 0 $ 2 , 5 0 0 $ 3 , 0 0 0 $ 3 , 0 0 0D e p r e c i a t i o n 1 , 0 0 0 D M $333 $333 $333 $400N e t o p e r a t i n g i n c o m e 1 , 5 0 0 D M $667 $ 1 , 1 6 7 $667 $600I n c o m e t a x (4 0 % ) 6 0 0 D M $267 $467 $267 $240P r o fi t a ft e r t a x 9 0 0 D M $400 $700 $400 $360$300 $ 5 5 0 $150N e t i n c o m e 9 0 0 D M $700 $150 $550 $360D i v i d e n d s 0 D M $0 $0 $0 $0Ad d i t i o n t o Re t a i n e d Ea r n i n g s 9 0 0 D M $700 $150 $550 $360F o r e i g n e x c h a n g e g a i n (l o s s )Translate at = $1 Translate at historical rate, = $1 40 How Various Translation Methods Deal with a Change from DM3 to DM2 = $1 I n c o m e S t a t e m e n tL o c a l Cu r r e n c yCu r r e n t / N o n c u r r e n t M o n e t a r y / N o n m o n e t a r yT e m p o r a l Cu r r e n t Ra t eS a l e s 1 0 , 0 0 0 D M $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0 $ 4 , 0 0 0CO G S 7 , 5 0 0 D M $ 3 , 0 0 0 $ 2 , 5 0 0 $ 3 , 0 0 0 $ 3 , 0 0 0D e p r e c i a t i o n 1 , 0 0 0 D M $333 $333 $333 $400N e t o p e r a t i n g