In accounting, the term translation refers to
A) the calculation of gains or losses from hedging transactions.
B) the calculation of exchange rate gains or losses on individual transactions in foreign currencies.
C) the procedure required to identify a company's functional currency.
D) the calculation of gains or losses from all transactions for the year.
E) a procedure to prepare a foreign subsidiary's financial statements for consolidation.

Question

Quizplus · Accepted Answer

Translation in accounting refers to the process of converting a foreign subsidiary's financial statements into the parent company's reporting currency for consolidation purposes.

In Accounting, the Term Translation Refers to