current standard for measuring translation exposure is
A) the current/noncurrent method
B) the monetary/nonmonetary method
C) FASB 8
D) FASB 52

Question

Quizplus · Accepted Answer

FASB 52 (Financial Accounting Standards Board Statement No. 52) provides the current standard for measuring translation exposure. This statement outlines the accounting treatment and reporting of foreign currency transactions in financial statements, including the translation of financial statements of foreign subsidiaries. It requires the use of the functional currency approach, which involves determining the primary currency in which a foreign subsidiary conducts its business and translating its financial statements into the reporting currency of the parent company. This minimizes the effects of translation exposure on the financial statements of the parent company.

Current Standard for Measuring Translation Exposure Is