Which of the following statements regarding the translation of financial statements from the "functional currency" to the "presentation currency" is FALSE?
A)Entities may choose to present their financial statements in any currency.
B)Given the rising trend towards globalization, management may like to present their financial statements in a currency different from their functional currency in order to attract investors or because it is required by local law or other regulation.
C)A company may display its statements in a language more relatable to a global marketplace used to viewing financial information denominated in a currency not functional to the entity.
D)Any gain or loss on translation is considered part of income.

Question

Quizplus · Accepted Answer

Any gain or loss on translation is not considered part of income, but is instead accounted for as a separate component of equity known as "translation adjustment".

Which of the Following Statements Regarding the Translation of Financial