FIRST YEAR -2016
Assume that a Philippine Company has 100% OWNED-S
opeartion in the company-owned building. The building
banks, although the parent invested 20 million NT Dollar i
NT Dollar. The Subsidiary
100% OWNED-SUBSIDIARY in Taiwan that began operation in 2016. The
ding. The building , which cost 50 million NT dollars (NT$), was financed pr
million NT Dollar in the Taiwan Operation. All revenue and cash expenses are
r. The Subsidiary also maintain its books and records in NT Dollar.
Taiwan Company
Statement of Financial Position
31-Dec-16
(In thousands of NT$)
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Land
Building
Accumulated Depreciation
Total Assets
Liabilities and Stockholder's Equity
Accounts Payable
Unearned rent
Mortgage Payable
Common Stock
Additional Paid in Capital
Retained Earnings
Total Liabilities and Stockholders' Equity
Taiwan Company
Statement of Comprehensive Income and Retained E
31-Dec-16
(In thousands of NT$)
Revenues
Operating Expenses (including depreciation of N
COMPREHENSIVE INCOME
Retained Earning January 1)
Dividends paid
Retained Earnings, December 31
eration in 2016. The subsidiary conducts
T$), was financed primarily by Taiwan
nd cash expenses are received and paid in
NT Dollar.
cial Position
NT$ 5,000
2,000
10,000
50,000
-1,000
NT$ 66,000
NT$ 3,000
1,000
40,000
4,000
16,000
2,000
NT$ 66,000
me and Retained Earnings
of NT$)
NT$ 20,000
reciation of N17,000
3,000
-1,000
NT$ 2,000
Taiwan Company
Translation of Financial Statements to Philippine Pesos
For the Year Ended December 31, 2016
(In thousands of NT$)
Taiwan Company
Statement of Comprehensive Income and Retained Earnings
31-Dec-16
(In thousands of NT$)
Revenues
Operating Expenses (including depreciation of NT$ 1,000)
COMPREHENSIVE INCOME
Retained Earning January 1)
Dividends paid
Retained Earnings, December 31
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Land
Building
Accumulated Depreciation
Total Assets
Liabilities and Stockholder's Equity
Accounts Payable
Unearned rent
Mortgage Payable
Common Stock
Additional Paid in Capital
Retained Earnings
TRANSLATION ADJUSTMENT - OCI
Total Liabilities and Stockholders' Equity
TO GET THE TRANSLATION A
NET ASSETS AT THE BEGINNING
CHANGES IN NET ASSETS:
Net Income
Dividends
NET ASSETS translated
During the year
At the end of the year (using closin
EXCHANGE DIFFERENCE
TRANSLATION ADJUSTMENT-OCI
NT$
NT$
NT$
NT$
NT$
NT$
NT$ EXCHANGE RATE
$20,000 0.9
3,000 1.05
-1,000 1.1
$22,000
$22,000 1.2
NT$
20,000
-17,000
3,000
-1,000
2,000
5,000
2,000
10,000
50,000
-1,000
66,000
3,000
1,000
40,000
4,000
16,000
2,000
66,000
ANGE RATE PHIL. PESO
18,000
3,150
-1,100
20,050
26,400
(P6,350)
VARIOUS ASSUMED EXCHANGE RATES FOR 2016 ARE AS FOLLOWS:
NT$ 1 = P0.90 at the beginning of 2016 (when the common stock wa
and building were financed through the mortgage)
NT$ 1 = P1.05 WEIGHTED AVERAGE for 2016
NT$ 1 = P1.10 at the date the dividends were declared and unearned
NT$ 1 = P1.20 closing ( December 31, 2016)
EXCHANGE RATES
1.05
1.05
1.05
-
1.1
1.2
1.2
1.2
1.2
1.2
1.2
1.2
1.2
0.9
0.9
. PESO
350)
E AS FOLLOWS:
ommon stock was issued and the land
ed and unearned rent was received.
Philippine Pesos
21,000
-17850
3150
-1,100
2050
6000
2400
12000
60000
-1200
79200
3600
1200
48000
3600
14400
2,050
6,350
NET ASSET BEGINNING
X
