Question

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.

Answer 1

Answer:

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