FAS #52 specifies each of the following rules EXCEPT
A) all assets and liabilities (including common equity) are translated at the current exchange rate
B) dividends paid are translated at the current exchange rate
C) income statement items are translated at an exchange rate (or an exchange rate average) from the reporting period
D) All of the above are elements of FAS #52
E) None of the above are elements of FAS #52

Question

Quizplus · Accepted Answer

FAS #52, also known as ASC 830 (Foreign Currency Matters), specifies that income statement items are translated at the exchange rate at the dates of the transactions or a weighted average exchange rate (C), and dividends are translated at the exchange rate on the dates of distribution (B). However, it does not require all assets and liabilities, including common equity, to be translated at the current exchange rate; rather, it specifies different treatments for monetary and non-monetary items.

FAS #52 Specifies Each of the Following Rules EXCEPT