Under FAS 52, a lower-of-cost-or-market test in U.S. dollars may be necessary under the remeasurement process but is never necessary under the translation process.

Question

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Under FAS 52, the lower-of-cost-or-market test is applied during the remeasurement process when converting foreign currency financial statements to U.S. dollars, but it is not applied during the translation process because translation involves converting financial statements from one currency to another using exchange rates without adjusting the underlying values of assets or liabilities for market conditions.

Under FAS 52, a Lower-Of-Cost-Or-Market Test in U