I thought I understood the concepts behind translation adjustments pretty well, but I’m totally blanking right now. In the CFAI chapter on multinational corporations, in example 5, how do they get the translation adjustments? I think they are 245000 and 55000… Thanks in advance…
bump…
bump.
990 = NI before translation. NI after translation + RE Begin (0) - Dividends (Translated) = RE End (After translation) NI After translation + 0 - (350*0.78) = 472 (from B/S) So NI After translation = 472 + 273 = 745 990 = NI Before translation 745 = NI After translation So Trans. loss = (245)
Thanks a lot! by “before translation” you mean before translation adjustment and not literally before translation though right?
yes it is in the table on the right side page…