If an American firm owns property in another country, and that country's currency strengthens against the dollar, the firm will incur a translation loss on its consolidated books.

Question

Quizplus · Accepted Answer

When a foreign currency strengthens against the dollar, the value of the foreign assets increases when converted back to dollars, leading to a translation gain, not a loss, on the consolidated financial statements of the American firm.

If an American Firm Owns Property in Another Country, and That