Under the U.S. method of translation procedures, if the financial statements of the foreign subsidiary of a U.S. company are maintained in U.S. dollars:
A) translation is accomplished through the current rate method.
B) translation is accomplished through the temporal method.
C) translation is not required.
D) the translation method to be used is not obvious.

Question

Quizplus · Accepted Answer

When the financial statements of a foreign subsidiary are already maintained in U.S. dollars, translation is not required because the financial information is already in the reporting currency of the U.S. company.