What is the “disappearing plant” problem that is addressed by FASB ASC 830, Foreign Currency Matters?
A. This refers to the accelerated depreciation methods that are popular for fixed asset valuation.
B. High inflation can result in extreme decreases in the reported amounts for foreign fixed assets.
C. Cheap foreign currency results in S. companies moving factory operations offshore.
D. Investment in fixed assets was not being reported on foreign subsidiary financial statements.
Answer:B
What is the “disappearing plant” problem that is addressed by FASB ASC 830, Foreign Currency Matters?
A. This refers to the accelerated depreciation methods that are popular for fixed asset valuation. B. High inflation can result in extreme decreases in the reported amounts for foreign fixed assets. C. Cheap foreign currency results in S. companies moving factory operations offshore. D. Investment in fixed assets was not being reported on foreign subsidiary financial statements.