Which of the following methods for translating foreign currency financial statements attempts to produce consolidated financial statements as if a subsidiary had actually used the parent company's currency for all its transactions?
A)Current/Noncurrent method
B)Monetary/Nonmonetary method
C)Current rate method
D)Temporal method

Question

Quizplus · Accepted Answer

The Temporal method attempts to produce consolidated financial statements as if the subsidiary had used the parent company's currency for all its transactions by remeasuring monetary items at current exchange rates and non-monetary items at historical rates.

Which of the Following Methods for Translating Foreign Currency Financial