Questions -

1."Financial Statements Conversions and Highly Inflationary Countries" Please respond to the following:

Assess a key strength and weakness of the two methods used to convert financial statements of a foreign entity into U.S. dollars. Predict circumstances that would warrant each of the two methods in question.

Create a financial scenario that may occur when a U.S. company operates in a highly inflationary country indicating the likely financial advantages for a company using the scenario. Provide support for your rationale.

2."Disclosure Requirements and Translation Methods" Please respond to the following:

Assess the importance of disclosure requirements for firms with foreign entities by focusing on their key benefits to financial statement users. Support two additional useful disclosure requirements. Argue that the additional requirements are beneficial.

Suggest a translation method that would benefit a company that is experiencing cash- flow problems. Provide examples to support your rationale.