How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RLWEA Your Own Question
RLWEA
RLWEA, Accountant
Category: Tax
Satisfied Customers: 69
Experience:  I am an Enrolled Agent with the IRS for 25+ years. Thank you for allowing me to assist you!
2388119
Type Your Tax Question Here...
RLWEA is online now
A new question is answered every 9 seconds

the gain or loss on the effective portion of a u.s. parent

Resolved Question:

the gain or loss on the effective portion of a u.s. parent company's hedge of a net investment in a foreign entity should be treated as:
1. an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
2. Other comprehensive income
3. A translation gain or loss in the computation of net income for the reporting period.
4. An adjustment to a valuation account in the asset section of its balance sheet.
Submitted: 6 years ago.
Category: Tax
Expert:  RLWEA replied 6 years ago.

RLWEA :

Hello, you need to due two things:The first part of the entry would be to the retained earnings, as you referenced in Number 1. The offsetting entry would be to the asset account as you referenced in Number 4.

RLWEA :

This should answer you well though out question, and possible answers. Thank you for allowing me to assist you. If you need additional clarifuication or assistance please let me know.

RLWEA :

Sincerely,

RLWEA :

Robyn L. Wysong, EA

RLWEA and 3 other Tax Specialists are ready to help you