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C. Balance Sheet Date
C. Balance Sheet Date
Under the temporal method, monetary assets and liabilities are translated by using
the exchange rate existing at the
c. Balance sheet date
(This technique of foreign currency translation is used when the local currency
of the subsidiary is not the same as the currency of the parent company.)
3. The process of translating the accounts of a foreign entity into its functional currency
when they are stated in another currency is called:
c. Remeasurement
(this is related to the definition of remeasurement)
4. Which of the following would be restated using the average exchange rate under the
temporal method?
5. Paid-in capital accounts are translated using the historical exchange rate under:
c. Both the current rate and temporal methods
(In order to approximate the exchange rate in effect when the items were
recognized.)
6. Which of the following would be restated using the current exchange rate under the
temporal method?
7. The translation adjustment that results from translating the financial statements of a
foreign subsidiary using the current rate method should be:
d. Historical rate
26. If the functional currency is determined to not be the foreign entity's local currency,
translation is done using
27. In most cases, which of the following is NOT a component of translated retained
earning?
28. Which of the following is NOT true regarding foreign statement translation using the
current or temporal method?
a. All assets and all liabilities are translated at the current exchange rate at
the date of translation
29. Which of the following is NOT considered when directly computing the translation
adjustment for foreign financial statements?
41. PAS 21 requires which of the following disclosures from firms involved in foreign
currency transactions?