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Alex787 [66]
2 years ago
15

Su Industries has international subsidiaries in Asia. These subsidiaries enter into transactions in both the US dollar and local

currencies. During the year, Su Industries reported a remeasurement loss of $55,000 and a translation gain of $36,000. As a result of these conversions, how much would Su Industries report in accumulated other comprehensive income (AOCI) at year end
Business
1 answer:
Savatey [412]2 years ago
5 0

Answer: Increase / Gain of $36,000

Explanation:

Remeasurement loss, which arises from conversions of the various currencies used by the company to a functional currency, goes to the Income statement and is subtracted from the Net income.

Translation gains on the other hand, are added to the Other Comprehensive income.

The other comprehensive income will therefore increase by the translation gain of $36,000.

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