Which foreign currency translation standard uses the following objective:
"1) Provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity.
2) Reflect in consolidated statements the financial results and relationships of the individual consolidated entities as measured in their functional currencies in conformity with generally accepted accounting principles."
A) Accounting Research Study #12
B) FASB Statement 8
C) FASB Statement 52
D) International Accounting Standard 14.

Question

Quizplus · Accepted Answer

This objective is one of the fundamental principles of foreign currency translation under FASB Statement 52, which provides guidance on how to translate foreign entities' financial statements into the reporting currency of the parent company. The other options either do not address this objective or are not relevant to foreign currency translation.

Which Foreign Currency Translation Standard Uses the Following Objective