Note: This is a Kaplan CPA Review Question
Gains from remeasuring a foreign subsidiary's financial statements from the local currency, which is not the functional currency, into the company's functional currency should be reported as a(an)
A) Deferred foreign exchange gain.
B) Part of continuing operations.
C) Separate component of stockholders' equity.
D) Extraordinary item, net of income taxes.

Question

Quizplus · Accepted Answer

Gains from remeasuring a foreign subsidiary's financial statements into the functional currency are reported as part of continuing operations, as they are considered part of the normal business activities.

Note: This Is a Kaplan CPA Review Question