Financial Accounting Standards Board (FASB)Statements 8 and 52 relate to the translation methods.The following outlines the objectives and descriptions of the two statements.
(i)Measure in dollars an enterprise's assets,liabilities,revenues,or expenses that are denominated in a foreign currency according to generally accepted accounting principles
(ii)Is essentially the temporal method of translation (with some subtle differences)
(iii)Provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity
(iv)Reflect in consolidated statements the financial results and relationships of the individual consolidated entities as measured in their functional currencies in conformity with U.S.generally accepted accounting principles
Which of the above statements pertain to FASB 52?
A)(i)
B)(i)and (ii)
C)(iii)and (iv)
D)(i),(ii),and (iii)

Question

Financial Accounting Standards Board (FASB)Statements 8 and 52 relate to the translation methods.The following outlines the objectives and descriptions of the two statements. 
(i)Measure in dollars an enterprise's assets,liabilities,revenues,or expenses that are denominated in a foreign currency according to generally accepted accounting principles
(ii)Is essentially the temporal method of translation (with some subtle differences)
(iii)Provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity
(iv)Reflect in consolidated statements the financial results and relationships of the individual consolidated entities as measured in their functional currencies in conformity with U.S.generally accepted accounting principles
Which of the above statements pertain to FASB 52?
A)(i)
B)(i)and (ii)
C)(iii)and (iv)
D)(i),(ii),and (iii)

Quizplus · Accepted Answer

FASB 52 focuses on using the functional currency and translating financial statements into the reporting currency, aiming to reflect the true financial position and results as if all operations were conducted in the functional currency. It emphasizes the economic effects of rate changes on cash flows and equity (iii) and requires the reflection of financial results in the functional currencies in conformity with U.S. GAAP (iv).

Financial Accounting Standards Board (FASB)Statements 8 and 52 Relate to the Translation