Which of the following primary principles of U.S. translation procedures is NOT true?
A) If the financial statements of the foreign subsidiary of a U.S. company are maintained in U.S. dollars, translation is not required.
B) If the financial statements of the foreign subsidiary are maintained in the local currency and the local currency is the functional currency, they are translated by the temporal method.
C) If the financial statements of the foreign subsidiary are maintained in the local currency and the U.S. dollar is the functional currency, they are remeasured by the temporal method.
D) All of the above are true.

Question

Quizplus · Accepted Answer

The correct principle for translating financial statements when the local currency is the functional currency is to use the current rate method, not the temporal method. The temporal method is used when the U.S. dollar is the functional currency.

Which of the Following Primary Principles of U