The all-current-rate method is the method by which the functional currency-denominated financial statements of an MNC's subsidiary are translated into the parent company's currency.

Question

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The all-current-rate method is indeed the method used to translate the financial statements of a subsidiary denominated in its functional currency into the parent company's currency. This method takes into account all current exchange rates, and any gains or losses from translation adjustments are reported in the parent company's equity under the cumulative translation adjustment (CTA) account.

The All-Current-Rate Method Is the Method by Which the Functional