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AMEX Corporation is an American Multinational company with operations in Kuwait. The Kuwait subsidiary company supplied...

AMEX Corporation is an American Multinational company with operations in Kuwait. The Kuwait subsidiary company supplied the following Annual report to the parent company in USA. The current rate is 1USD = 0.309607 KWD, historical rate is                         1 USD= 0.30897 and average rate is I USD= 0.31099 KWD.

..Assets

Amount (KWD)

Liabilities

Amount (KWD)

Cash

1,000

Current Liabilities

      4,000

Short term Investment

7,000         

Capital  

10,000

Accounts receivables

2,000           

Borrowings          

6,000

Inventory     

3,000            

Retained Earnings         

5,000

Plant and Machinery

9,000

       

Computer

3,000

Total  

25,000

Total  

    25,000

You are required to

i.        Determine the reporting currency using current rate method, current and non- current method and, monetary and non- monetary method.   

ii) Calculate the Net Exposed Assets by using Current/Non-Current Method and Temporal Method?

please solve it carefully

thank you

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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