Tuesday, May 3, 2011

All-current method and Temporal method

Local currency price: constant
FC: depreciation (vs. DC)

 All-current method and Temporal method
methodTemporalin DCAll-current
Net income (before translation gains and losses)<
D/E
<
Gross profit margin
= (Revenue - COGS)/Revenue
(A-H)/A<(A-A)/A
COGSH>A

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