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mote1985 [20]
3 years ago
6

If the british subsidiary of a european firm has net exposed assets of £250,000, and the euro increases in value from €1.50/£ to

€1.40/£, the european firm has a translation ________.
Business
1 answer:
nexus9112 [7]3 years ago
6 0

Currency translation is the process of quoting the amount of money denominated in one currency in the denomination of another currency on a balance sheet. Currency translation is done using current exchange rates. So the european firm has a translation of

(£250,000 x €1.50/£) – (£250,000 x €1.40/£) =  € 25000

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Question 7
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Question 7
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