All Current method translation doubt!

CFA Level II
#1

I am doing the All Current method translation from the CFAI book-2, Page 203/204 Question-1 Part-B. The solution to which is on AppendixA- Reading 26 - A13 page The “Retained Earnings December 31, 1997” was give to be Yen250,000 in the balance sheet. I have no idea how they convered the Yen250,000 to $2000 and have written ‘Given’ against it. Is retained earning some kind of a PLUG figure??? Help please, I have already waisted 2 hours on that crap page

#2

dinesh.sundrani Wrote: ------------------------------------------------------- > Help please, I have already waisted 2 hours on > that crap page How big are you getting?

#3

^^ MWVT9…you crack me up!!! dinesh…I don’t have my books in front of me…but I think i vaguely remember this question… I think somewhere in the exhibit…in really tiny font they have written that retained earnings is $2 billion or something if i’m not mistaken… it’s kinda like a note / source at the bottom of the statements…and if i remember correctly, that is beginning retained earnings right??

#4

I undeerstood the complete translation, but just dont know how that Retained earning got converted from 250K yen to 2K $$ Anybody, I am getting impatient now!!

#5

Easy there dinesh. Sudden weight gain can make anybody impatient. I don’t have the books either, but I am sure someone will chime in.

#6

mumukada Wrote: ------------------------------------------------------- > ^^ MWVT9…you crack me up!!! > > dinesh…I don’t have my books in front of me…but > I think i vaguely remember this question… > > I think somewhere in the exhibit…in really tiny > font they have written that retained earnings is > $2 billion or something if i’m not mistaken… > > it’s kinda like a note / source at the bottom of > the statements…and if i remember correctly, that > is beginning retained earnings right?? mumu - you have made my day!! what suckers they guys are - they have used verdana font family type with a font of 5’ center align. yucks… puke…

#7

dinesh…the retained earnings would have comprised of the previous years, CE, NI div etc…and hence the rates might be different on each one…details of which are not given in the text… CE would have used the historical rate, NI would have used the average rate of THAT year, and dividends the rate they were declared in the previous year… why you breaking your head on this… if its given…take it!!

#8

Nice. Glad you figured it out.