Each company in a group records its foreign currency transactions at the year end rate.

Question

Quizplus · Accepted Answer

Each company in a group may have different foreign currency transactions and may record them at different rates depending on their individual accounting policies. Additionally, if a company has ongoing foreign currency transactions throughout the year, they would not wait until year-end to record them. Instead, they would record them on a regular basis using a consistent exchange rate.

Each Company in a Group Records Its Foreign Currency Transactions