A is corrent. According to ASC Topic 830, translation adjustments resulting from the translation of foreign currency statements should be reported separately as a component of "other comprehensive income" under one of three alternatives and in "accumulated other comprehensive income" in stockholders’ equity. Additionally, gains and losses on certain foreign currency transactions should be reported in the same manner. Those gains and losses which should be excluded from net income and instead reported in "other comprehensive income" and as a component of stockholders’ equity include foreign currency transactions designated as economic hedges of a net investment in a foreign entity. Thus, both the translation loss and the exchange gain are to be reported as "other comprehensive income" and in the stockholders’ equity section of the balance sheet.
B is incorrect. According to ASC Topic 830, translation adjustments resulting from the translation of foreign currency statements should be reported separately as a component of "other comprehensive income" under one of three alternatives and in "accumulated other comprehensive income" in stockholders’ equity. Additionally, gains and losses on certain foreign currency transactions should be reported in the same manner. Those gains and losses which should be excluded from net income and instead reported in "other comprehensive income" and as a component of stockholders’ equity include foreign currency transactions designated as economic hedges of a net investment in a foreign entity. Thus, both the translation loss and the exchange gain are to be reported as "other comprehensive income" and in the stockholders’ equity section of the balance sheet.
B is incorrect. According to ASC Topic 830, translation adjustments resulting from the translation of foreign currency statements should be reported separately as a component of "other comprehensive income" under one of three alternatives and in "accumulated other comprehensive income" in stockholders’ equity. Additionally, gains and losses on certain foreign currency transactions should be reported in the same manner. Those gains and losses which should be excluded from net income and instead reported in "other comprehensive income" and as a component of stockholders’ equity include foreign currency transactions designated as economic hedges of a net investment in a foreign entity. Thus, both the translation loss and the exchange gain are to be reported as "other comprehensive income" and in the stockholders’ equity section of the balance sheet.
D is incorrect. According to ASC Topic 830, translation adjustments resulting from the translation of foreign currency statements should be reported separately as a component of "other comprehensive income" under one of three alternatives and in "accumulated other comprehensive income" in stockholders’ equity. Additionally, gains and losses on certain foreign currency transactions should be reported in the same manner. Those gains and losses which should be excluded from net income and instead reported in "other comprehensive income" and as a component of stockholders’ equity include foreign currency transactions designated as economic hedges of a net investment in a foreign entity. Thus, both the translation loss and the exchange gain are to be reported as "other comprehensive income" and in the stockholders’ equity section of the balance sheet.
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