Under the temporal rate method, specific assets and liabilities are translated at exchange rates consistent with the timing of the item's creation.

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The temporal rate method is a method of translating financial statements of a foreign entity into the reporting currency of the parent company. This method requires assets and liabilities to be translated at exchange rates consistent with the timing of the item's creation. This means that the exchange rate used for translating an asset or liability is based on the exchange rate at the time the item was acquired or incurred.

Under the Temporal Rate Method, Specific Assets and Liabilities Are