Foreign currency translation is perhaps the most prominent accounting issue that directly and significantly affects the results revealed in MNE's financial statements.

Question

Quizplus · Accepted Answer

Foreign currency translation impacts the financial statements of MNEs as they operate across borders, engage in foreign transactions, and hold assets and liabilities denominated in foreign currencies. The translation of these items into the reporting currency can have a significant impact on the financial performance and position of the company. Therefore, foreign currency translation is an important accounting issue that affects the financial statements of MNEs.

Foreign Currency Translation Is Perhaps the Most Prominent Accounting Issue