SFAS No. 52 adopted a functional currency orientation to accounting for foreign currency operations, which means that the financial statements of a foreign entity should be translated into the reporting currency of the parent company based on the functional currency of the foreign entity.

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SFAS No. 52 Adopted

Question 71

Multiple Choice

SFAS No. 52 adopted:

A) a U.S. dollar orientation to accounting for foreign currency operations.
B) a functional currency orientation to accounting for foreign currency operations.
C) a foreign currency orientation to accounting for foreign currency operations.
D) none of the above.

Correct Answer: