On consolidation using the Canadian dollar presentation, the appropriate exchange rate for translating a plant asset in the balance sheet of a foreign subsidiary in which the functional currency is the Canadian dollar is the:

Question

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The appropriate exchange rate for translating a plant asset in the balance sheet of a foreign subsidiary in which the functional currency is the Canadian dollar is the historical exchange rate in effect when the plant asset was acquired or the date of acquisition, whichever is later. This is because the historical rate reflects the value of the asset at the time of acquisition and is therefore the most relevant rate for balance sheet purposes. The current rate, average rate, and forward rate are not appropriate for this purpose as they do not reflect the historical cost of the asset.

On Consolidation Using the Canadian Dollar Presentation, the Appropriate Exchange