Which of the following methods translates assets valued in a foreign currency into the home-country currency using the exchange rate that exists when the assets are purchased?

Question

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The temporal method is used to translate assets valued in a foreign currency into the home-country currency using the exchange rate that exists when the assets are purchased. This method is often used for long-term assets such as property, plant, and equipment. The current rate method, on the other hand, uses the current exchange rate to translate foreign currency transactions into the home-country currency. The operating cost accounting method is not related to foreign currency translation, and the historic cost principle is a general accounting principle that requires assets to be recorded at their historical cost, not their current value.

Which of the Following Methods Translates Assets Valued in a Foreign