If a subsidiary is operating in a highly inflationary economy, how are the financial statements to be restated?
A) Historical rate.
B) Working capital rate.
C) Translation.
D) Temporal method.
E) Current rate.

Question

Quizplus · Accepted Answer

In a highly inflationary economy, the temporal method is used to restate financial statements, where monetary items are translated at current rates and non-monetary items at historical rates.

If a Subsidiary Is Operating in a Highly Inflationary Economy