Under both the temporal method and the current rate method, what exchange rate should be used to translate a foreign subsidiary's dividends into parent company currency?
A) Current rate
B) Historical rate
C) Average rate
D) Any of the above methods can be used under both the temporal and current method.

Question

Quizplus · Accepted Answer

Dividends are translated using the historical rate because they are related to a specific transaction date, reflecting the rate at the time the dividend was declared.

Under Both the Temporal Method and the Current Rate Method