Worked-example setupScope and assumptions
- All entities, transactions, values, rates, designations, and conclusions are fictional and supplied for instruction.
- The verifier recomputes bounded mechanics; it does not make scope, valuation, control, functional-currency, tag-selection, or release conclusions.
- Period
- Year ended December 31, Year 5
- Units
- US dollars, foreign-currency units, and XBRL contexts as labeled
- Rounding
- Retain full precision; display currency with commas and parentheses and ratios to two decimals
Monetary item
The €200,000 receivable begins at $216,000 and closes at $222,000, producing a $6,000 Year 5 transaction gain. Settlement at $220,000 in the next period produces a separate $2,000 loss. Currency units, quotation direction, and dates remain visible on every line.
Foreign entity
The translated statements yield $80,000 net income and $250,000 ending retained earnings. Independently translated assets, liabilities, common stock, and retained earnings require a $60,000 translation adjustment. That amount belongs to the supplied OCI/CTA route, not the receivable gain or operating cash flow.
Quantitative companions
Choose from 2 ways to work with this calculation.
Verified calculation · professional extension analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- acquisition basis asset adjustment
- 0
- cash consideration
- 0
- closing rate
- 1.11
- current earnings reclassification
- 0
- derivative ending fair value
- 0
- derivative opening fair value
- 0
- forecast purchase basis adjustment
- 0
- foreign currency units
- 200,000
- hedge type
- none
- hedged item attributable change
- 0
- identifiable assets fair value
- 0
- intercompany payable elimination
- 0
- intercompany receivable elimination
- 0
- investment elimination
- 0
- liabilities assumed fair value
- 0
- monetary item kind
- receivable
- noncash consideration
- 0
- noncontrolling interest fair value
- 0
- opening aoci
- 0
- parent assets
- 0
- parent liabilities
- 0
- previously held interest fair value
- 0
- reported closing carrying amount
- 222,000
- reported complete xbrl facts
- 0
- reported consolidated assets
- 0
- reported consolidated liabilities
- 0
- reported current earnings effect
- 0
- reported current oci effect
- 0
- reported derivative change
- 0
- reported duplicate xbrl facts
- 0
- reported ending aoci
- 0
- reported goodwill
- 0
- reported initial functional amount
- 216,000
- reported remeasurement gain loss
- 6,000
- reported translated net income
- 80,000
- reported translation adjustment
- 60,000
- settlement rate
- 1.1
- subsidiary assets
- 0
- subsidiary liabilities
- 0
- transaction rate
- 1.08
- translated assets
- 1,420,000
- translated beginning retained earnings
- 190,000
- translated common stock
- 500,000
- translated dividends
- 20,000
- translated expenses
- 700,000
- translated liabilities
- 610,000
- translated revenue
- 780,000
Recomputed result
| Measure | Value |
|---|---|
| closing carrying amount | 222,000 |
| initial functional amount | 216,000 |
| post close settlement gain loss | -2,000 |
| remeasurement gain loss | 6,000 |
| translated net income | 80,000 |
| translation adjustment | 60,000 |