When the local currency of the foreign subsidiary is the functional currency,a foreign subsidiary's income statement accounts would be converted to U.S.dollars by:
A) translation using historical exchange rates.
B) remeasurement using current exchange rates at the time of statement preparation.
C) translation using average exchange rate for the period.
D) remeasurement using the current exchange rate at the time of statement preparation.

Question

Quizplus · Accepted Answer

When the local currency is the functional currency, the income statement accounts are translated using the average exchange rate for the period.

When the Local Currency of the Foreign Subsidiary Is the Functional