If the translation process is sound, it should:
A)provide information that is compatible with the expected economic effects of rate changes.
B)reflect in the financial statements the financial results of the company in conformity to the accounting principles of the country in which the subsidiary is located.
C)result in translation adjustments that are relatively consistent in amount.
D)None of the above is correct.

Question

If the translation process is sound, it should:
A)​provide information that is compatible with the expected economic effects of rate changes.
B)​reflect in the financial statements the financial results of the company in conformity to the accounting principles of the country in which the subsidiary is located.
C)​result in translation adjustments that are relatively consistent in amount.
D)​None of the above is correct.

Quizplus · Accepted Answer

A sound translation process should ensure that the information provided is compatible with the expected economic effects of rate changes, as this reflects the economic reality of the transactions and balances being translated.

If the Translation Process Is Sound, It Should