CFA II questions: multinational operation and financial reporting quality

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Dear All!
I came across two problems yesterday with respect to IAS21、revenue to cash collection from customer ratio、off B/S financing、inventory valution.
Could anyone please clarify these problems:

(1) IAS21 require that financial statement of foreign entity first be restated for local inflation, then the inflation restated foreign statements are translated into parent's presentation currency using the Current Exchange Rate(i.e Current Rate Method); (cited from textbook page 286, 3.2.4 highly inflation economies)

In addition, example 7 (textbook page 304) translated financial statement of foreign entity into parent company's currency by using all Current Exchange Rate for highly inflation situation.

therefore, I have a reason to believe that Current Exchange Rate should be used for translation of foreign statement under highly inflation environment.
however, IAS21 also mentioned current rate method as equivalent to current exchange rate, where the confusion arise from. As far as current rate method concern, current exchange rate applied onto B/S (except for equity), average exchange rate applied onto I/S.

In this case, CFA committe seems to be making a mistake by mixing up current rate method with current exchange rate. I am wirting this to ask

which one should be correct answer for the similar problem like example 7: using current exchange rate to all financial statements, or using current rate method?

(2) how to use the ration of revenue divided by cash collection from customer in analyzing financial reporting quality?
      which statements is correct:
      a  the bigger the ratio, the better the earning quality and financial reporting quality
      b the smaller the ratio, the better the earning quality and financial reporting quality

(3) textbook page 405, example 7 off balance sheet debt: question 3 regarding to estimation of restating operating lease back onto financial statement and its impact.
      I am not able to understand the solution given by textbook, could you please explain the solution to me?

thanks

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关键词：questions Reporting operation financial National CFA financial Reporting operation quality

Question 1

你很细心，这个问题在官方教材和notes中没有明确。的确是很困惑大家。
涉及具体科目数据计算：对于需要用price index来调整的科目，price index调整后，用current rate.（在前面所讲的current rate method不含这种高通胀的情形）
如果问的是IFRS用何种method 来调整，可以说price index 调整后，用current method
U.S.GAAP用temporal method.

我这边再核实资料，进一步确认该问题。

问题2）

Cash collection=revenue- increase receivable +increase unearned revenue
反映收入中现金的状况。对于ratio of revenue divided by cash collection.
如果小，说明现金所在revenue中的比重大，反之，说明现金所占比重小。

严格的来说，quality的关键在于这个ratio是否稳定stable （每期变化是否稳定），而不是在于大小。现金过少或过多在财务上都不是好的表现。

对于你的问题。如果没有其他背景，b选项比较合适。因为现金所在的比重大，说明公司流动性强，应收账款的违约风险小。

同学，麻烦将问题3中的题目以及solution贴上来，因为我手头目前没有教材。

谢谢