If a parent company has an autonomous subsidiary in a country where the cumulati
ID: 2432798 • Letter: I
Question
If a parent company has an autonomous subsidiary in a country where the cumulative rate of inflation for the past three years is more than 100 percent, which translation methodology would they use according to the IASC?
the temporal method after adjusting for inflation.
the current rate method.
the temporal method.
the current rate method after adjusting for inflation.
A.the temporal method after adjusting for inflation.
B.the current rate method.
C.the temporal method.
D.the current rate method after adjusting for inflation.
Explanation / Answer
B.The Current Rate Method
The susbisidary is not foriegn entity as it is situated in a country or same country As a reason The current rate method is used
If it is a foreign entity then temporal method is used
And All inflation Fluctuation were separatly disclosed and should not adjusted.
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