For multinational companies, stockholders' equity in the foreign subsidiaries' financial statements is translated into U.S. dollars at the historical exchange rate on the date of the financial statements.

Question

Quizplus · Accepted Answer

Stockholders' equity in the foreign subsidiaries' financial statements is translated into U.S. dollars at the historical exchange rate on the date of the financial statements because this is the rate that was in effect when the transactions that gave rise to the stockholders' equity occurred.

For Multinational Companies, Stockholders' Equity in the Foreign Subsidiaries' Financial