Multiple Choice
If a parent company has a subsidiary in a country where the cumulative rate of inflation for the past three years is around 100 percent, which translation methodology would they use under FASB Statement No. 52?
A) the temporal method.
B) the temporal method after adjusting for inflation.
C) the current rate method.
D) the current rate method after adjusting for inflation.
Correct Answer:
Verified
Correct Answer:
Verified
Q38: According to which method is the foreign
Q39: According to FASB Statement No. 52,<br>A) translation
Q40: Assume that U.S. parent company ABC
Q41: IAS 21 and SFAS 52 have the
Q42: In the current rate method the assets
Q44: According to IAS 21,<br>A) a forward contract
Q45: The local currency is<br>A) the currency in
Q46: From the standpoint of the parent company,
Q47: According to the temporal method of translation,<br>A)
Q48: The process by which one currency is