FASB #52 allows companies to record changes in the balance sheet of their subsidiaries as unrealized losses or gains.

Question

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FASB (Financial Accounting Standards Board) Statement No. 52, "Foreign Currency Translation," allows companies to record changes in the exchange rates affecting the value of their foreign subsidiaries as unrealized gains or losses in the shareholders' equity section of the balance sheet, rather than recognizing these changes directly in the income statement. This approach is used to account for the translation of foreign currency financial statements into the reporting currency.

FASB #52 Allows Companies to Record Changes in the Balance