I was getting a 0.25 +ve NI from the translation of the Sub’s income statement. A 0 RE End balance by translating the Balance sheet. So NI = 0.25 Million = 250 K Since this was a made up question by you and the numbers are purely made up - I looked up the Q on Schweser - and there is no question out there that makes you calc the Translation gain/loss. In this case Translation Gain/loss would be -250K
Got it you missed my earlier correction, and so you did the same thing that CPK did, the LTD at 12/31/2001 is supposed to be 35,000,000 as opposed to 40,000,000. Once you make the adjustment you’ll see that ending RE is zero.
dammmm… This AF formatting has started to piss me now. So then L = 4.5 15.7 - 4.5 = 11.2 + RE RE = 0 [PLUG] converting IS gives NI = 0.25 Clean Surplus RE(E) = RE(B) + NI - D NI = RE(E) = 0 But after remeasurement NI comes out to be 0.25 0 = 0.25 + TGL TGL = -0.25 So final Ans = 250K Loss We are all on the same page now ;-p
me too man, me too! yea we are all on the same page now but we are still all wrong according to Schweser!
in that case, most likely schweser is wrong. i would trust cpk over schweser any day.
adavydov - not sure where you saw a translation adjustment on this question in Schweser. I checked the question online - there were questions related to the inventory/cogs/ etc. etc. but nothing related to the translation adjustment that you asked us. I have an updated QBank - possibly this was one of the questions that they just deleted because it had the “holding” and “flow” effect on it, because of which the q was removed.
This cannot be solved without holding and flow effect. Notice that the jan 1, 2001 B/S does not balance in LC. Therefore it means there are other components in the B/S that are not given.
ok just to throw the wrinkle in, if you did holding/flow- under temporal, exposure = (cash + AR) - (AP + current debt + LTD) so beg exp = 25 - 50 = -25 end exp = 55 - 50 = 5 flow = 30 (.1 - .11) = -.3 holding = -25 (.1 - .12) = .5 translation G/L = .5 - .3 = 200k. living in my 2008 world, i would’ve said 200k is the answer.
Yea my Schweser isn’t updated that may be why. Good eye jaspreet. Lets chalk this one up to another Schweser-ror, GOD I HATE THESE BASTARDS!!!
^ Hey how did you manage to type that word. I love using foul langauge and would want that extra privilege over here on this forum, expecially in the last 30 days where I am an active volcano.
I dunno I just type it, maybe its because its all caps, let me try it out with some others to check: FUCK SCHWESER SCHWESER BELONGS IN THE TOILET WITH MY SHIT
lol it worked, type in caps and you can cuss on here, awesome inadvertent find!!!