Under the temporal method
A)All balance sheet and all income statement items are translated at the current exchange rate
B)All balance sheet and some income statement items are translated at the current exchange rate
C)Some balance sheet and all income statement items are translated at the current exchange rate
D)Some balance sheet and some income statement items are translated at the current exchange rate

Question

Quizplus · Accepted Answer

Under the temporal method, some balance sheet and some income statement items are translated at the current exchange rate while some other items are translated at historical exchange rates. Specifically, monetary assets and liabilities are translated at the current exchange rate, while non-monetary items are translated at historical exchange rates. Meanwhile, income statement items are translated based on the exchange rate at the time a transaction occurs. Therefore, the most appropriate choice is D.

Under the Temporal Method