Which of the following methods for translating foreign currency financial statements is required under IAS 21?
A)Current rate method
B)Temporal method
C)Current rate method or temporal method,depending on the functional currency of the subsidiary
D)Current rate method or temporal method may be chosen by management of the parent.

Question

Quizplus · Accepted Answer

IAS 21 requires the use of either the current rate method or the temporal method, depending on the functional currency of the subsidiary. The choice of method should be consistent from period to period and is determined based on the subsidiary's primary economic environment and the nature of its operations. Therefore, choice C is the best answer.

Which of the Following Methods for Translating Foreign Currency Financial