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g In translating the financial statements of a foreign subsidiary into the parent’s reporting currency under the current rate method, which of the following statements is true? Multiple Choice Expenses are translated using a combination of current and historical exchange rates. Intangible assets are translated at the historical exchange rates in effect on the date the assets are purchased. The translation adjustment is a function of the foreign subsidiary’s net assets. The translation adjustment is a function of the relative amount of monetary assets and monetary liabilities held by the foreign subsidiary.

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The translation adjustment is a function of the foreign subsidiary's net assets.

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