The Financial Accounting Standards Board (FASB) Standard No. 52 mandates that U.S.-based companies translate their foreign-currency-denominated assets and liabilities into dollars using the current rate (translation) method.

Question

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FASB Standard No. 52 does indeed mandate that U.S.-based companies use the current rate method to translate their foreign-currency-denominated assets and liabilities into dollars. This method entails using the exchange rates in effect at the time of the financial statement preparation to determine the value of those items.