The translation methodology which assumes that the only assets that should be translated at the historical rate are those carried at past exchange prices is the
A) current-noncurrent method.
B) monetary-nonmonetary method.
C) temporal method.
D) current rate method.

Question

Quizplus · Accepted Answer

The assumption described in the question is characteristic of the temporal method, which separates assets and liabilities into monetary and non-monetary categories and translates them differently based on whether they are carried at historical or current exchange rates. The current-noncurrent and monetary-nonmonetary methods are not relevant to this particular assumption, and the current rate method does not differentiate assets based on past exchange prices.

The Translation Methodology Which Assumes That the Only Assets That