ExamVeda
Login
Home
International Finance and Treasury
?

This is not established method of translation

Answer & Solution
Correct Answer: Option C
Temporary method is not established method of translation. Temporal rate method, or the historical rate method, is employed to convert the financial statements of a parent company’s foreign subsidiaries from its local currency to its “reporting” or “functional” currency when the functional currency and the local currency are not the same. Temporal Method is also utilized at the time of acquisition of assets and liabilities.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.