Two important practical differences between the monetary/non-monetary method and the current rate method of translation is found in their treatment of:

Question

Quizplus · Accepted Answer

The monetary/non-monetary method and the current rate method differ significantly in their treatment of inventories and fixed assets. The monetary/non-monetary method translates monetary items at the current exchange rate and non-monetary items (like inventories and fixed assets) at historical rates, whereas the current rate method translates all assets and liabilities at the current exchange rate.

Two Important Practical Differences Between the Monetary/non-Monetary Method and the Current