Which method of translating foreign currency financial statements must be used according to FASB ASC 830, Foreign Currency Matters?
A) Temporal method for all subsidiaries
B) Current rate method for all subsidiaries
C) U.S. parent companies may choose between the temporal method and the current rate method
D) Temporal method for subsidiaries that are closely controlled by the parent and current rate method for subsidiaries which are not

Question

Quizplus · Accepted Answer

FASB ASC 830 allows for the use of the temporal method for subsidiaries that are closely integrated with the parent company, and the current rate method for subsidiaries that operate more independently. This approach is chosen based on the level of integration and operational independence of the subsidiary from the parent company.

Which Method of Translating Foreign Currency Financial Statements Must Be