Under the temporal method,how is an exchange gain arising from the long-term debt of a foreign subsidiary,accounted for?
A)Deferred until the date of maturity
B)Recognized as a component of current income
C)As part of the cumulative translation adjustment
D)Deferred and amortized over the period to maturity

Question

Quizplus · Accepted Answer

Under the temporal method, exchange gains or losses from long-term debt are recognized in the current income statement as they occur, reflecting the impact of exchange rate changes on the financial statements.

Under the Temporal Method,how Is an Exchange Gain Arising from the Long-Term