Upon consolidation, goodwill is re-translated at the ________ rate for the purposes of consolidation.

Question

Quizplus · Accepted Answer

Upon consolidation, goodwill is re-translated at the closing rate for the purposes of consolidation. This is because the closing rate is the appropriate exchange rate to use for translating the foreign subsidiary's assets, liabilities, and equity for consolidation purposes. The closing rate is the exchange rate at the end of the reporting period, which reflects the most accurate and up-to-date valuation of the foreign currency denominated items.

Upon Consolidation, Goodwill Is Re-Translated at the ________ Rate for the Purposes