Which of the following is not considered when directly computing the translation adjustment for foreign financial statements?
A)Beginning amount of net assets held by the domestic investor
B)Increase or decrease in net assets for the period excluding capital transactions
C)Increase or decrease in net asset as a result of capital transactions
D)All are considered when directly computing the translation adjustment

Question

Which of the following is not considered when directly computing the translation adjustment for foreign financial statements?
A)​Beginning amount of net assets held by the domestic investor
B)​Increase or decrease in net assets for the period excluding capital transactions
C)​Increase or decrease in net asset as a result of capital transactions
D)​All are considered when directly computing the translation adjustment

Quizplus · Accepted Answer

All the options listed (A, B, and C) are considered when directly computing the translation adjustment for foreign financial statements. This adjustment is necessary to account for changes in exchange rates over the reporting period and their impact on the value of foreign investments when reported in the domestic investor's currency.

Which of the Following Is Not Considered When Directly Computing