FASB No. 52 is a statement issued by the Financial Accounting Standards Board requiring American MNCs to first convert the financial statement accounts of foreign subsidiaries into the country's functional currency and then translate the accounts into the parent firm's currency using the ________ method.

Question

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FASB No. 52 requires American MNCs to use the all-current-rate method for translating foreign currency financial statements. This method uses current exchange rates to translate all income statement and balance sheet items, including those denominated in the functional currency, into the parent company's reporting currency. The use of historical or average rates for translation purposes is not required by FASB No. 52. The weighted average method is not used for translation, but for calculating the cost of inventory in a hyperinflationary economy.

FASB No 52 Is a Statement Issued by the Financial Accounting