Under this approach, land is reported on the parent’s 31 December 2002 consolidated balance sheet at US$1,100 with a cumulative, unrealized gain of US$100. Although the cumulative translation gain on 31 December 2002 is unrealized, it could have been realized if (1) the land had appreciated in TL value by the rate of local inflation, (2) the Turkish subsidiary sold the land for TL 1,835,243,163, and (3) the sale proceeds were converted into US$1,100 at the current exchange rate on 31 December 2002.
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