When using the current-rate method to translate foreign currency financial statements into the parent currency, translation gains and losses are recognized in comprehensive income.

Question

Quizplus · Accepted Answer

Translation gains and losses resulting from the use of the current-rate method are recognized in the comprehensive income section of the consolidated financial statements. The gains and losses are not recognized in the income statement since they do not arise from actual transactions but result from changes in exchange rates.

When Using the Current-Rate Method to Translate Foreign Currency Financial