medium · Financial Accounting accounting-cycle-financial-statements
A multinational firm translates its foreign subsidiary's financial statements using the current rate method.
Where is the resulting 'Cumulative Translation Adjustment' (CTA) reported?
- In the Financing section of the Statement of Cash Flows.
- As a gain or loss in the 'Other Income' section of the Income Statement.
- As an adjustment to Cost of Goods Sold in the Income Statement.
- In Other Comprehensive Income (OCI) on the balance sheet within Equity.
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