Under which method does the gain or loss due to translation adjustment not affect reported cash flows,as it does with the other three translation methods?
A)Current/noncurrent method
B)Monetary/nonmonetary method
C)Temporal method
D)Current rate method

Question

Quizplus · Accepted Answer

Under the current rate method, the gain or loss due to translation adjustment does not affect reported cash flows, as it is included in the income statement as an unrealized gain or loss. The other three methods (current/noncurrent method, monetary/nonmonetary method, and temporal method) can affect reported cash flows because they include translation adjustments in the balance sheet.

Under Which Method Does the Gain or Loss Due to Translation