can you please explain what would happen in the case of foreign assets being depreciated? When it translates, the asset translates at the period end rate, and the depreciation expense translates at the period average rate. How do you account for this difference in eliminations? Thank you!
Thank you for your informative vids. What if the Dep. Asset sold outside the group in subsequent year. Do we recognize the remaining unrealized gain at once? Taking into account the depreciation difference expnsed during the period?
Here we are doing eliminations in between company (ie parent&subsidiary) . So because of that transaction accumulated depreciation is overvalued and the value of the machine is undervalued. So we keep passing the journal entry until the gain will be zero.
can you please explain what would happen in the case of foreign assets being depreciated? When it translates, the asset translates at the period end rate, and the depreciation expense translates at the period average rate. How do you account for this difference in eliminations? Thank you!
Thank you so much.
You're welcome! Thank you and please visit the website for more farhatlectures.com/ Start your free trial!
Thank you for your informative vids.
What if the Dep. Asset sold outside the group in subsequent year. Do we recognize the remaining unrealized gain at once? Taking into account the depreciation difference expnsed during the period?
Here we are doing eliminations in between company (ie parent&subsidiary) . So because of that transaction accumulated depreciation is overvalued and the value of the machine is undervalued. So we keep passing the journal entry until the gain will be zero.
Thank you so much
You're most welcome. Please connect with me: linktr.ee/farhatlectures
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