When the functional currency of a foreign operation is a foreign currency,translation of financial statements is accomplished through which method?
A) Current rate method
B) Temporal method
C) Either current rate or temporal method
D) None of the above

Question

Quizplus · Accepted Answer

The current rate method is used when the functional currency of a foreign operation is a foreign currency. This method translates all assets and liabilities at the current exchange rate.

When the Functional Currency of a Foreign Operation Is a Foreign