In the temporal method, fixed assets such as real estate are translated at:

Question

Quizplus · Accepted Answer

In the temporal method, fixed assets such as real estate are translated at their historic cost. This method assumes that the assets are held to generate future cash flows in the local currency, which represents the economic environment that they operate in. As fixed assets tend to have long useful lives, their historic costs are an appropriate basis for translation. Market values, assessed values, or an average of the period's rates would not be relevant for translation purposes in the temporal method.

In the Temporal Method, Fixed Assets Such as Real Estate