When using the current rate method, the translation adjustment from translating a foreign subsidiary's financial statements should be shown as
A) An asset or liability (depending on the balance) in the consolidated balance sheet.
B) A revenue or expense (depending on the balance) in the consolidated income statement.
C) A component of stockholders' equity in the consolidated balance sheet.
D) A component of cash flows from financing activities in the consolidated statement of cash flows.
E) An element of the notes which accompany the consolidated financial statements.

Question

Quizplus · Accepted Answer

The translation adjustment from the current rate method is recorded as a component of stockholders' equity, specifically in the accumulated other comprehensive income section of the consolidated balance sheet.

When Using the Current Rate Method, the Translation Adjustment from Translating