Oracle engages in many transactions with nonowners (that is, customers, suppliers, and the government) that increase net assets. For example, Oracle's foreign subsidiaries per- form services on credit with unrelated third-party customers.

The accounts receivable generated by the transactions are denominated in a foreign currency and thus are reported on the foreign subsidiaries' balance sheet in that foreign currency.

The consoli- dation process causes the subsidiary's accounts receivable to be added to the parent company's (Oracle's) accounts receivable and reported on Oracle's Consolidated Balance Sheet.

Assuming that the foreign currency strengthens relative to the U.S. dollar, how does Oracle's Consolidated Statement of Shareholders' Equity capture the increases in accounts receivable described in this example transaction?