The two accepted methods discussed in class regarding the translation of the cur

Question

The two accepted methods discussed in class regarding the translation of the currency of a foreign subsidiary into the currency of the parent company are the following: the current rate method (FASB 52) and the temporal method (FASB 8). Comment on each item listed in the space provided. "If an asset is shown at historical cost before translation, it remains valued at historical cost (but in another currency) if the current rate method is used in the translation process. However, the same would not necessarily be true if the temporal method was used in the translation process." Do you agree or not? Explairn. .

Explanation / Answer

No, the given statement is incorrect. In current rate method assets are translated at current exhange rate.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.