_____ Under FAS 52, how is the effect of an exchange rate change reported when the current rate method of translation is used?
A) Report as a deferred gain or loss in the balance sheet.
B) Report currently in earnings.
C) Report in Other Comprehensive Income.
D) Report in the "Owner Changes in Net Assets" section of the statement of comprehensive income.
E) Report as an extraordinary item.

Question

Quizplus · Accepted Answer

Under FAS 52, when using the current rate method of translation, the effect of an exchange rate change is reported in Other Comprehensive Income (OCI). This approach separates the impact of currency translation from the regular operations reflected in the net income, recognizing it instead as a component of OCI until realized.

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