Inventories carried at cost in a foreign subsidiary's local currency financial statements are remeasured to functional currency dollar amounts at the historical exchange rate under the:

Question

Quizplus · Accepted Answer

Under the monetary/nonmonetary method, inventories, being nonmonetary items, are remeasured at the historical exchange rate. This method distinguishes between monetary items (cash, receivables, and payables, which are remeasured at the current exchange rate) and nonmonetary items (like inventories, fixed assets, and equity, which are remeasured at the historical exchange rate).

Inventories Carried at Cost in a Foreign Subsidiary's Local Currency