ACCT 304 Week 9 Assignment 2 Foreign Currency Risk

ACCT 304 Week 9 Assignment 2 Foreign Currency Risk for $11 Only

Due Week 9 and worth 310 points

Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three (3) foreign subsidiaries. Albert knows that the target subsidiaries are located in countries that require transactions to be denominated in the local currencies. Albert has researched foreign currency risk and knows that there is accounting exposure in accounting statements, operating exposure in future cash flows, and transaction exposure in outstanding obligations. Albert does not understand how these risks apply to XYZ, Inc. under his proposal or if there are any mitigating risk strategies available. Albert requests you, the head of the Risk Management division, to prepare a report that he can present to the Board of Directors on the potential foreign currency risk if XYZ, Inc. expands sales into these markets. XYZ, Inc.’s reporting currency is the U.S. dollar and the subsidiaries would purchase the merchandise as inventory items.

Note: You may create and / or make all necessary assumptions needed for the completion of this assignment.

Write a three to five (3-5) page paper in which you:

  1. Specify accounting exposure, operating exposure, and transaction exposure. Determine the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed.
  2. Determine two (2) types of hedges regarding foreign exchange risk, in general, and recommend the most advantageous risk mitigation strategy for XYZ, Inc. Provide support for your rationale. Note: Refer to Chapter 9 of the textbook for more information on corporate strategies regarding hedging foreign exchange risk.
  3. Determine the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Determine the fundamental differences in balance sheet exposure from the application of each method.
  4. Suggest the translation method that XYZ, Inc. should use in order to minimize balance sheet exposure. Provide support for you choice.
  5. Compare the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Determine the main similarities and differences between the two (2) methods of translation. Assuming one (1) of the subsidiaries of XYZ, Inc. is located in a highly inflationary country, determine the appropriate translation method under FASB and provide the theoretical justification for your response.
  6. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, ddouble-spaced using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine and prepare the accounting entries for intra-entity asset transactions.
  • Examine the impact that specific differences between IFRS and U.S. GAAP have on financial statements.
  • Explain foreign currency transactions and analyze the accounting requirements for the translation of financial statements of foreign entities.
  • Use technology and information resources to research issues in advanced accounting.
  • Write clearly and concisely about advanced accounting using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric.

Price of Answer: Just US$11 only

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ACCT 304 Week 8 Final Exam

ACCT 304 Week 8 Final Exam in $36 only

ACCT 304 Week 8 Final Exam gives the answer to:

  • Income from continuing operations sometimes includes gains from non-operating activities.
  • Income from continuing operations is an after-tax number consisting of revenues, expenses, gains, and losses.
  • Income from continuing operations equals net income only in the absence of separately reported items.
  • Intraperiod tax allocation is the process of associating income tax effects with the income statement components that create those effects.
  • If the effective tax rate is 40%, a $200,000 before-tax extraordinary gain would increase net income by $120,000.
  • If General Motors ceased production of the Corvette, it would report any material gains or losses that would result under discontinued operations.
  • Discontinued operations require reclassification of prior years’ income statements but no change in prior years’ net income.
  • Operating income or loss from discontinued operations up to the disposal date is separately reported.
  • The measurement and disposal dates of discontinued operations must fall within the same fiscal year.
  • If an overall loss from discontinued operations is expected, then the loss is reported in the year in which the measurement date falls.
  • Estimated gains from discontinued operations can be reported in the measurement year only to the extent of estimated losses.
  • An item must meet the subjective criteria of being both unusual and infrequent to be reported as extraordinary.
  • The definition of what constitutes an extraordinary item should be independent of the operating environment.

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ACCT 304 Week 4 Midterm

ACCT 304 Week 4 Midterm in $26 only

1. (TCO 1) Which of the following has the authority to set accounting standards in the United States?

2. (TCO 2) The conceptual framework’s qualitative characteristic of faithful representation includes:…

3. (TCO 3) A sale on account would be recorded by:…

4. (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the “Prepaid rent” account:…

5. (TCO 3) Permanent accounts would not include:…

6. (TCO 4) Noncurrent assets include:…

7. (TCO 4) The acid-test ratio is also known as the:…

8. (TCO 5) Popson Inc. incurred a material loss which was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as:…

9. (TCO 5) On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:…

10. (TCO 5) In the operating activities section of the statement of cash flows, we start with net income:…

11. (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:..

12. (TCO 5) Expenses in an income statement prepared under International Financial Reporting Standards:..

13. (TCO 4) The balance sheet reports:…

14. (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

1. (TCO 5) What would be Misty’s net income for the current year?

2. (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses…

1. (TCO 4) Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

2. (TCO 2) What is the SEC and how is it involved with accounting standard setting?

3. (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements….

4. (TCO 3) Describe what is meant by unearned revenues and give two examples….

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If you need any type of help regarding Homework, Assignments, Projects, Case study, Essay writing or any thing else then just email us at [email protected]solvemyquestion.com. We will get back to you ASAP. Do not forget to maintain the time frame you need you work to be done.

ACCT 304 Week 4 Midterm

ACCT 304 Week 4 Midterm

1. (TCO 1) Which of the following has the authority to set accounting standards in the United States?

2. (TCO 2) The conceptual framework’s qualitative characteristic of faithful representation includes:

3. (TCO 3) A sale on account would be recorded by:

4. (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the “Prepaid rent” account:

5. (TCO 3) Permanent accounts would not include: