[rvcpa]

Wiley Question –

A foreign subsidiary’s functional currency is its local currency, which has not experienced significant inflation. The weighted-average exchange rate for the current year would be the appropriate exchange rate for translating

Wages expense Sales to customers

yes yes

yes no

no yes

no no

I clicked A which I am sure is the right answer but it is telling me this. Is it wrong? or am I the drunk one?

This answer is incorrect. Per ASC Topic 830, the weighted-average exchange rate is used to translate revenues, expenses, gains, and losses from the functional currency to the reporting currency. Both wages expense and sales to customers fall under this rule and should be translated using the weighted-average exchange rate.

[kma0505]

I had this SAME exactly problem last night. I read it over and over thinking I was just dumb, but I'm pretty sure Wiley is the wrong one here…

Unless we're BOTH just crazy.

REG: 78 (OCT 2013)
FAR: 79 (FEB 2014)
AUD: TBD
BEC: TBD

[kma0505]

I had this SAME exactly problem last night. I read it over and over thinking I was just dumb, but I'm pretty sure Wiley is the wrong one here…

Unless we're BOTH just crazy.

REG: 78 (OCT 2013)
FAR: 79 (FEB 2014)
AUD: TBD
BEC: TBD

[jasonrobbins]

I wish I was drunk.

…and it's only 2pm on a saturday.

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[jasonrobbins]

I wish I was drunk.

…and it's only 2pm on a saturday.

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[Kimboroni]

I think you are right. The very same question is in my Wiley book. Yes/yes is option b, which is marked as the right answer, with this explanation:

The current rate method for the translation of foreign currency financial statements is used when a foreign subsidiary's functional currency is its local currency. Using the current rate method, revenue and expenses should be translated into US dollars at the weighted-average rate for the current year. Thus, both sales to customers and wages expense should be translated at the weighted-average rate.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Kimboroni]

I think you are right. The very same question is in my Wiley book. Yes/yes is option b, which is marked as the right answer, with this explanation:

The current rate method for the translation of foreign currency financial statements is used when a foreign subsidiary's functional currency is its local currency. Using the current rate method, revenue and expenses should be translated into US dollars at the weighted-average rate for the current year. Thus, both sales to customers and wages expense should be translated at the weighted-average rate.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Wiley CPA Exam Review]

@rvcpa, thank you for bringing this to our attention. We have sent this over to our editors and are working on correcting and updating any content issues/grammatical errors that are found. If you come across anything else, would you mind going here -> https://wiley.custhelp.com/ to fill out a web form or initiate a chat so that we can make sure we get any other content errors fixed?

In the meantime, we will keep posting changes/updates to this thread: https://www.another71.com/cpa-exam-forum/topic/everything-you-need-to-know-about-2014-wiley-test-bank.

[Wiley CPA Exam Review]

@rvcpa, thank you for bringing this to our attention. We have sent this over to our editors and are working on correcting and updating any content issues/grammatical errors that are found. If you come across anything else, would you mind going here -> https://wiley.custhelp.com/ to fill out a web form or initiate a chat so that we can make sure we get any other content errors fixed?

In the meantime, we will keep posting changes/updates to this thread: https://www.another71.com/cpa-exam-forum/topic/everything-you-need-to-know-about-2014-wiley-test-bank.

[ymmit]

Wiley sobered up! 😉

Licensed CPA!

[ymmit]

Wiley sobered up! 😉

Licensed CPA!

[rvcpa]

I dont mean to be an a** but just an FYI this still hasn't been fixed. This question came up again and still says C is the correct answer.

[rvcpa]

I dont mean to be an a** but just an FYI this still hasn't been fixed. This question came up again and still says C is the correct answer.

[Author]

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