Where is the disposition of a translation loss reported in the parent company's financial statements?
A) Net loss in the income statement.
B) Cumulative translation adjustment as a deferred asset.
C) Cumulative translation adjustment as a deferred liability.
D) Accumulated other comprehensive income.
E) Retained earnings.

Question

Quizplus · Accepted Answer

Translation losses are reported in the accumulated other comprehensive income section of the equity portion of the balance sheet, not in the income statement or as deferred assets/liabilities.

Where Is the Disposition of a Translation Loss Reported in the Parent