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Subject Topic: Bonds in remeasurement (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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tiger2010
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Posted: 11 Apr 2010 at 16:14 | IP Logged  

During remeasurement (F2-55, Becker 2009), amortization of bonds is recorded in I/S using historical rate. But as we know that bonds are monetary assets, so on BS, they should be booked using current rate. For me, it's so conflicting that bonds are booked at current rate on BS, while their amortization is recorded in I/S using historical rate.

Can anyone help clarifying this for me?

Thanks!
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HFAnderson
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Posted: 12 Apr 2010 at 03:09 | IP Logged  

F2-55 has to deal with remeasurement of a foreign company's financial statements to GAAP. It does not deal with domestic corporation.

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venchlu
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Posted: 12 Apr 2010 at 16:24 | IP Logged  

In my opinion, it is just the rule we gotta memorize...in translation method( current method)...all I/S items we use weight avg rate.

And what is the difference between translation and remeasurement method regarding I/S items...in remeasurement method, all I/S items we use weight avg rate except- Depreciation Exp, Cost of Goods Sold and amortization exp.

 

 



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