Transaction gains and losses that result from adjusting assets and liabilities denominated in a currency other than the functional currency must appear on the foreign unit's income statement unless the gains or losses are attributable to
A) foreign currency transactions that are designated as an economic hedge of a net investment in a foreign entity
B) intercompany foreign?currency transactions that are of a short? term nature
C) foreign?currency transactions that involve currency speculation
D) all of the above

Question

Quizplus · Accepted Answer

The gains and losses from foreign currency transactions designated as an economic hedge of a net investment in a foreign entity are not required to appear on the foreign unit's income statement.

Transaction Gains and Losses That Result from Adjusting Assets and Liabilities