What exchange rate should be used to translate the common stock of Essco Ltd,a foreign subsidiary of Peako Corp.,when consolidating the financial statements using the current rate method?
A)current rate
B)historical rate
C)average rate
D)cannot be determined with the information given

Question

Quizplus · Accepted Answer

Under the current rate method, common stock is translated at the historical rate, which is the exchange rate at the date of issuance.

What Exchange Rate Should Be Used to Translate the Common