Question

The following accounts are denominated in rubles as of December 31, 2017. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2012. The buildings were acquired in 2013 and the patents in 2015.

 

Exchange rates for 1 ruble are as follows:

2012	1 ruble			=	0.28
2013	1			=	0.26
2015	1			=	0.25
1-Jan-17	1			=	0.24
1-Apr-17	1			=	0.23
1-Jul-17	1			=	0.22
1-Oct-17	1			=	0.2
31-Dec-17	1			=	0.16
Average for 2017	1			=	0.19

Answer 1

	Translation		Remeasurement
Accounts payable	0.16	Current   Rate	0.16	Current   Rate
Accounts receivable	0.16	Current   Rate	0.16	Current   Rate
Accumulated depreciation	0.16	Current   Rate	0.26	Historical   rate
Advertising expense	0.19	Average   rate	0.19	Average   rate
Amortization expense (patents)	0.19	Average   rate	0.25	Historical   rate
Buildings	0.16	Current   Rate	0.26	Historical   rate
Cash	0.16	Current   Rate	0.16	Current   Rate
Common stock	0.28	Historical   rate	0.28	Historical   rate
Depreciation expense	0.19	Average   rate	0.26	Historical   rate
Dividends (10/11/15)	0.2	Historical   rate	0.2	Historical   rate
Notes payable – due in 2018	0.16	Current   Rate	0.16	Current   Rate
Patents (net)	0.16	Current   Rate	0.25	Historical   rate
Salary expense	0.19	Average   rate	0.19	Average   rate
Sales	0.19	Average rate	0.19	Average rate