Answer each of the following questions and cite appropriate justification for your answer

Answer each of the following questions and cite appropriate justification for your answer. (GAAP ASC Codifcation)

1.         GAAP requires recognition of gains and losses related to changes in             exchange rates subsequent to the rate used in the initial measurement. If       exchange rates change subsequent to the date of the financial        statements, should the most recent financial statements be restated to       reflect the change?

2.         Certain income statement accounts are translated at weighted-average exchange rates. What guidance is provided for the determination of the            weighted-average exchange rate?

3.         Company A has a foreign subsidiary located in a country that historically    has had a highly inflationary economy. However, during the current year,       the economy of the country of the foreign subsidiary is no longer       considered highly inflationary. How does this change affect Company A’s           accounting and reporting related to the foreign subsidiary?

4.         Company A sold a foreign subsidiary during the current year. In Company            A’s equity, there was a cumulative foreign translation adjustment related           to the subsidiary. How will this cumulative foreign translation adjustment     be accounted for in the sale?

5.         Is it possible for an entity to have more than one functional currency? If so, what circumstances must exist?