liability 变小，不是negative adjustment吗

问题如下：

Triofind, Inc. (Triofind), based in the country of Norvolt, provides wireless services to various countries, including Norvolt, Borliand, Abuelio, and Certait. The company’s presentation currency is the Norvolt euro (NER), and Triofind complies with IFRS. Triofind has two wholly owned subsidiaries, located in Borliand and Abuelio. The Borliand subsidiary (Triofind-B) was established on 30 June 2016, by Triofind both investing NER1,000,000, which was converted into Borliand dollars (BRD), and borrowing an additional BRD500,000.

Marie Janssen, a financial analyst in Triofind’s Norvolt headquarters office, translates Triofind-B’s financial statements using the temporal method. Non-monetary assets are measured at cost under the lower of cost or market rule. Spot BRD/NER exchange rates are presented in Exhibit 1, and the balance sheet for Triofind-B is presented in Exhibit 2.

Janssen next analyzes Triofind’s Abuelio subsidiary (Triofind-A), which uses the current rate method to translate its results into Norvolt euros. Triofind-A, which prices its goods in Abuelio pesos (ABP), sells mobile phones to a customer in Certait on 31 May 2017 and receives payment of 1 million Certait rand (CRD) on 31 July 2017.

On 31 May 2017, Triofind-A also received NER50,000 from Triofind and used the funds to purchase a new warehouse in Abuelio. Janssen translates the financial statements of Triofind-A as of 31 July 2017 and must determine the appropriate value for the warehouse in Triofind’s presentation currency. She observes that the cumulative Abuelio inflation rate exceeded 100% from 2015 to 2017. Spot exchange rates and inflation data are presented in Exhibit 3.

Janssen gathers corporate tax rate data and company disclosure information to include in Triofind’s annual report. She determines that the corporate tax rates for Abuelio, Norvolt, and Borliand are 35%, 34%, and 0%, respectively, and that Norvolt exempts the non-domestic income of multinationals from taxation. Triofind-B constitutes 25% of Triofind’s net income, and Triofind-A constitutes 15%. Janssen also gathers data on components of net sales growth in different countries, presented in Exhibit 4.

Based on Exhibits 1 and 2, the translation adjustment for Triofind-B’s liabilities into Triofind’s presentation currency for the six months ended 31 December 2016 is:

选项：

A.

negative.

B.

zero.

C.

positive.

解释：

C is correct.

The monetary balance sheet items for Triofind-B are translated at the current exchange rate, which reflects that the Borliand dollar weakened during the period relative to the Norvolt euro. The rate as of 30 June 2016 was BRD1.15/NER (or NER0.8696/BRD) and as of 31 December 2016 was BRD1.20/NER (or NER0.8333/BRD). Therefore, notes payable translates to NER416,667 (BRD500,000 × NER/BRD0.8333) as of 31 December 2016, compared with NER434,783 (BRD500,000 × NER/BRD0.8696) as of 30 June 2016. Thus, the translation adjustment for liabilities is positive.

考点：temporal method下liability转换

解析：temporal method下monetary asset/liability转换使用current exchange rate，这道题问的是translation adjustment，其实就是问的是这6个月期间，期初转换完的liability和期末转换完的liability的变化量。6个月期间的汇率有变化，所以6个月之前转换的liability金额跟6个月之后的金额肯定不同，这个差额就是translation adjustment。

子公司B的负债转换成NER，六个月前后的汇率分别为1.15BRD/NER和1.20BRD/NER：子公司B的负债只有notes payable一项，转换为NER：2016年6月30日是500,000/1.15=434,783, 2016年12月31日是500,000/1.2=416,667。转换后的金额变小了，是positive adjustment。