The amount of a foreign operation's post-acquisition retained earnings as translated into functional currency will depend on the amount translated from the statement of comprehensive income.

Question

Quizplus · Accepted Answer

The post-acquisition retained earnings of a foreign operation will be translated into the functional currency using the exchange rate at the balance sheet date. The amount translated will depend on the balance of retained earnings in the statement of comprehensive income of the foreign operation. Therefore, the statement in the question is true.

The Amount of a Foreign Operation's Post-Acquisition Retained Earnings as Translated