Whether the functional currency is local or the parent company's currency, owner's equity is always translated at:

Question

Quizplus · Accepted Answer

Owner's equity is always translated at the historical rate, which is the rate in effect when the stock was issued. This is because the equity items represent historical events, and their value is maintained at the historical exchange rate to reflect the economic circumstances at the time of the transactions.

Whether the Functional Currency Is Local or the Parent Company's