GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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14:47 Mar 6, 2004 |
Spanish to English translations [PRO] Bus/Financial - Finance (general) / Mexico | |||||||
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| Selected response from: Henry Hinds United States Local time: 02:29 | ||||||
Grading comment
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Summary of answers provided | ||||
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5 +1 | monetary position |
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5 | Accumulated gain or loss on monetary position |
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monetary position Explanation: Ya Exp. |
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Grading comment
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Accumulated gain or loss on monetary position Explanation: This involves inflationary accounting. A company may have monetary assets and monetary liabilities whose purchasing power is decreased in a period of inflation. At the same time, those assets and liabilities maintain their face value. This generates a loss when monetary assets are involved, insofar as the company translates those assets into money and makes use thereof. The face vlue of that money will be the same, but the related purchasing power will be lower. On the other hand, this generates a gain with respect to liabilities, insofar as the face value of the money will be the same, but the liability will be liquidated with amounts of money that have lower purchasing power. All of this is contained in Bulletin B-10 and its five amendments of Accounting Principles Generally Accepted in Mexico (Recognition of the impact of inflation on financial information), issued by the Instituto Mexicano de Contadores Públicos, A. C. Reference: Documento Integrado del Boletín B-10 (con casos prácticos) Reconocimiento de los efectos de la inflación en la información financiera - Comisión de Principios de Contabilidad Publisher: Instituto Mexicano de Contadores Públicos Hope this helps. 15 years experience translating for International public accounting firms in Mexico City |
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