Identify and Explain foreign subsidiary transactions and how Essay

Identify and Explain foreign subsidiary transactions and how determination of functional currency affects group profit for Qantas - Essay Example 2) Maintenance and overhauling cost of each subsidiary is shown in their financial statement as opposed to financial statement of parents. Each subsidiary is likely to incur this cost based on their need for maintenance. This is also based on the underlying principle of matching concept whereby each subsidiary (JETSAR) recognizes the revenue it earns from freight and air passengers it is necessary to match the maintenance cost incurred against the revenue earned. Qantas Ltd cannot undertake the transaction as this would result in bearing expenses for revenue that has not been earned by the parent company. 3) External segment tours and travel revenue of Jetstar would be recorded in the subsidiaries books of account (Qantas, 2010). This is the revenue that does not contain any inter group transaction (that are automatically eliminated in the consolidated statements) but rather pertains to sales made to external customers (Hodge, 2009). This segment is not targeted by Qantas Limited and revenue arises as a result of operations conducted by Jetstar Pacific. The business reason for this transaction not being undertaken by Qantas Ltd is that Jetstar is essentially targeting its flight at different routes in order to maximize cost saving for the entire group such as undertaking the route to New Zealand. The revenue principally arises as a result of operations undertaken by Jetstar and thus are recorded in subsidiaries books. The functional currency is defined as the currency of the primary economic environment in which the entity operates (Hodge, 2009). If the functional currency of the subsidiary of Qantas Limited is Australian dollar (AUD) then the subsidiaries financial statements would involve the statement of Assets and liabilities, revenue and income in the Australian dollar only. If the subsidiary has a functional currency other than the Australian dollar for example the American dollar

HLT362V exercise 27 Assignment Example | Topics and Well Written Essays - 250 words

HLT362V exercise 27 - Assignment Example As the hours of postnatal increase, the Systolic Blood Pressure also increases, which is a positive relationship. Postnatal age hours (x) which is the independent variable is positively related to the Diastolic Blood Pressure (DBP) i.e. as the postnatal age hour increases so is SBP. This can be observed also from the graph, the graph for Figure 2 B has a positive slope since the line extends from the lower left corner to the upper right corner and shows a positive relationship. This line shows that the increase in x (independent variable) is also associated with an increase in y (dependent variable). Thus, the independent variable postnatal age is used to predict the dependent variable of Diastolic Blood Pressure (DBP). As the hours of postnatal increase, the Systolic Blood Pressure also increases, which is a positive relationship. Postnatal age hours (x) which is the independent variable is positively related to the Mean Blood Pressure (MBP) i.e. as the postnatal age hour increases so is MBP. This can be observed also from the graph; the graph for Figure 2 C has a positive slope since the line extends from the lower left corner to the upper right corner and shows a positive relationship. This line shows that the increase in x (independent variable) is also associated with an increase in y (dependent variable). Thus, the independent variable postnatal age is used to predict the dependent variable of Mean Blood Pressure (MBP). As the hours of postnatal increase, the Systolic Blood Pressure also increases, which is a positive relationship. Postnatal age hours (x) which is the independent variable is positively related to the Systolic Blood Pressure (SBP) i.e. as the postnatal age hour increases so is SBP. This can be observed also from the graph; the graph for Figure 3A has a positive slope since the line extends from the lower left corner to the upper right corner and shows a positive relationship. This line