Under the two-transaction perspective, changes in the exchange rate between the transaction date and the settlement date would not result in an adjustment to the amount initially recorded as a sale in an exporting transaction.

Question

Quizplus · Accepted Answer

Under the two-transaction perspective, the exchange rate at the transaction date is used to record the sale, and any subsequent changes in the exchange rate are recognized as a separate gain or loss on foreign currency translation.

Under the Two-Transaction Perspective, Changes in the Exchange Rate Between