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 must 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 to translate foreign currency financial statements, depending on the functional currency of the subsidiary. Therefore, the best choice is (C), which correctly states both methods may be used depending on the functional currency.

Which of the Following Methods for Translating Foreign Currency Financial