Mixing of valuation bases (foreign fixed assets and domestic fixed assets) occurs under the temporal method.

Question

Quizplus · Accepted Answer

Under the temporal method, assets and liabilities are translated at exchange rates consistent with the timing of the item's creation. Therefore, foreign fixed assets might be translated at historical rates, while domestic fixed assets are recorded at their domestic values, leading to a mix of valuation bases.

Mixing of Valuation Bases (Foreign Fixed Assets and Domestic Fixed