 How different Items are being presented in different translation methods:

1) Single method (Current method):

Financial statement Rate Exception

Income statement Weighted average rate Dividends (Privilege rate)
Capital (Historical – date of
Balance sheet Current rate
issuance or acquisition)

2) Current/Non-current method:

Financial statement Rate Exception

Income statement Weighted average rate Dividends (Privilege rate)
Current rate for:

 Current assets

 Current liabilities

Historical for:
Balance sheet ---
 Non-current assets

 Non-current
liabilities

 Capital (date of
issuance or
acquisition)
3) Monetary/Non-monetary method

Financial statement Rate Exception

1- Beg. Inventory (Avg.
historical at the beginning)

COGS statement 2- Purchases (Avg. rate) ---

3- End. Inventory (Avg.

Historical at the end)
1- Dividends (Privilege rate)

Income statement Avg. rate 2- Depreciation (Historical –

date of issuance or
acquisition)
Current rate for monetary
items (Cash/AR/AP/Loans)
Stock (Avg. Historical at the
Balance sheet Historical rate(date of
end)
issuance or acquisition) for
Non-monetary items
(Plant/capital)
 4) Temporal method

Financial statement Rate Exception

1- Beg. Inventory
(historical rate)

COGS statement 2- Purchases (Avg. rate) ---

3- End. Inventory (Current

rate)
1- dividends (Privilege rate)

2- Dep. (Historical – date of

Income statement Avg. rate issuance or acquisition)

3- Income tax (Current

rate)

1- Plant (Historical – date

of issuance or acquisition)
Balance sheet Current rate
2- Capital (Historical –
Date of issuance or
acquisition)

IMPORTANT NOTES:

 You can use average rate to translate Dividends instead of privilege rate if not
existed

 You can use historical rate to translate depreciation, plant, and capital if issuance
rate is not existed

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