_____ Under FAS 52, how is the effect of an exchange rate change for the current year reported when the current rate method of translation is used?
A) Currently in the earnings.
B) Currently in earnings as an extraordinary item if material.
C) As a direct charge or credit to Other Comprehensive Income.
D) Deferred in the asset or liability section of the balance sheet.
E) None of the above.

Question

Quizplus · Accepted Answer

Under FAS 52, when the current rate method of translation is used, the effect of an exchange rate change for the current year is reported as a direct charge or credit to Other Comprehensive Income, not in the current earnings.

_____ Under FAS 52, How Is the Effect of an Exchange