In the consolidated financial statements, translation gains and losses for an international subsidiary are reported:

Question

Quizplus · Accepted Answer

Translation gains and losses for an international subsidiary are typically reported in consolidated other comprehensive income, as they arise from translating the financial statements of a foreign operation into the presentation currency of the reporting entity. This approach avoids impacting the consolidated net income with fluctuations due to exchange rate changes.

In the Consolidated Financial Statements, Translation Gains and Losses for an International