The most important aspect of the FASB?52 is that
A) it is consistent with generally accepted accounting practice that requires balance?sheet items to be valued according to their underlying measurement basis
B) it disallows all reserves for currency losses
C) it mandates a uniform translation standard for all firms
D) most translation gains and losses bypass the income statement and are accumulated in a separate equity account on the parent's balance sheet

Question

Quizplus · Accepted Answer

The most important aspect of FASB 52 is that most translation gains and losses bypass the income statement and are accumulated in a separate equity account on the parent's balance sheet. This means that foreign currency fluctuations do not directly affect a company's income statement and instead, are reflected in a separate account on the balance sheet. This allows for a more accurate depiction of a company's operational performance, without the interference of currency fluctuations.

The Most Important Aspect of the FASB?52 Is That