When the current rate method is used, the sign (+ or -) of the translation adjustment is the result of:
A) appreciation or depreciation of the foreign currency.
B) the nature of the balance sheet exposure.
C) both (A) and (B).
D) None of the above

Question

Quizplus · Accepted Answer

The translation adjustment sign under the current rate method is influenced by both the appreciation or depreciation of the foreign currency and the nature of the balance sheet exposure.

When the Current Rate Method Is Used, the Sign