According to FASB Statement No. 52, "Foreign Currency Translation," inventories of a foreign subsidiary carried at first-in, first-out cost in the subsidiary's functional currency balance sheet are translated to U.S. dollars at the historical exchange rate.

Question

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Inventories carried at FIFO (or any cost method) are translated at the exchange rates as of the dates the inventories were acquired, not necessarily the historical exchange rate, which is used for assets and liabilities carried at historical cost. The statement aims to reflect the value of the inventory at the current rate, not the historical rate.

According To FASB Statement No