Under both the temporal method and the current rate method, what exchange rate should be used to translate a foreign subsidiary's additional paid-in capital into parent company currency?
A) Closing rate
B) Current rate
C) Average rate
D) Historical rate

Question

Quizplus · Accepted Answer

Under both the temporal method and the current rate method, additional paid-in capital is translated using the historical rate, which is the exchange rate at the time the capital was originally contributed.

Under Both the Temporal Method and the Current Rate Method