hard · Financial Accounting
Under US GAAP, if an entity's functional currency is the parent's reporting currency (U.S. Dollar) but the local books are kept in a foreign currency, which method is used to translate the financial statements, and where are the resulting gains/losses recognized?
- Translation (Current Rate) method; recognized in Other Comprehensive Income.
- Remeasurement (Temporal) method; recognized in Net Income.
- Translation (Current Rate) method; recognized in Net Income.
- Remeasurement (Temporal) method; recognized in Other Comprehensive Income.
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