Which of the following is not true concerning the recognition of unrealized gains and losses on foreign currency translation during the consolidation process?
A) Firms do not recognize these gains/losses in current income.
B) Firms recognize these gain/losses in the statement of other comprehensive income
C) Firms increase/reduce their investment accounts by the translation gains/losses
D) Unrealized gains and losses increase/decrease other accumulated comprehensive income in shareholders' equity.

Question

Quizplus · Accepted Answer

Firms do not increase or reduce their investment accounts by the translation gains/losses. Instead, they adjust their translation reserve account in the accumulated other comprehensive income section of shareholders' equity.

Which of the Following Is Not True Concerning the Recognition