The biggest advantage of the current rate method of reporting translation adjustments is the fact that the gain or loss goes directly to the reserve account on the consolidated balance sheet and does not pass through the consolidated income statement.

Question

Quizplus · Accepted Answer

This statement is true. The current rate method of reporting translation adjustments allows gains or losses to be directly reflected in the consolidated balance sheet through the reserve account instead of passing through the income statement.

The Biggest Advantage of the Current Rate Method of Reporting