On January 1, 2017, Roswell Systems, a U.S.-based company, purchased a controlling interest in Bern Management Consultants located in Bern, Switzerland. The acquisition was treated as a purchase transaction. The 2017 financial statements stated in Swiss francs are given below. Direct exchange rates for Swiss franc are: Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translation adjustment.

Question

On January 1, 2017, Roswell Systems, a U.S.-based company, purchased a controlling interest in Bern Management Consultants located in Bern, Switzerland. The acquisition was treated as a purchase transaction. The 2017 financial statements stated in Swiss francs are given below.  Direct exchange rates for Swiss franc are:  Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translation adjustment.

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Roswell Systems, a U.S.-based company, purchased a controlling interest in Bern Management Consultants located in Bern, Switzerland. The acquisition was treated as a purchase transaction. The 2017 financial statements stated in Swiss francs are given below.  Direct exchange rates for Swiss franc are:  Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translation adjustment.