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

Question

Quizplus · Accepted Answer

The temporal method attempts to produce consolidated financial statements as if a foreign subsidiary had actually used the parent company's currency for all its transactions. It adjusts the subsidiary's financial statements for changes in exchange rates that occur between the subsidiary's transaction date and the date of the parent company's financial statements. The other options listed either do not attempt to produce consolidated financial statements or do not use the parent company's currency as the basis for translation.

Which of the Following Methods for Translating Foreign Currency Financial