Pedro Ruiz is an analyst for a credit rating agency. One of the companies he follows, Eurexim SA, is based in France and complies with International Financial Reporting Standards (IFRS). Ruiz has learned that Eurexim used EUR220 million of its own cash and borrowed an equal amount to open a subsidiary in Ukraine. In 2020, Ukraine becomes highly inflationary with inflation rate of 40% and the UAH has depreciated by 60%. Only inventory of the subsidiary is non-monetary asset and all liabilities are monetary liabilities.
After translation, the current ratio of the subsidiary would be:
这个题的理解就是只看inventory的变化即可。需要乘上1+inflation rate，即1.4，在用cr转换，这里说外币贬值0.6，我的理解就是cr变成了原来的1.6倍，所以1.4*1.6，远远大于之前的inventory。
