When the current rate method is used, the calculation of any unrealized intercompany profit on intercompany inventory transfers is made using the current exchange rate.

Question

Quizplus · Accepted Answer

When using the current rate method, the calculation of any unrealized intercompany profit on intercompany inventory transfers is typically made using the historical exchange rate at which the goods were originally transferred, not the current exchange rate.

When the Current Rate Method Is Used, the Calculation of Any