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 ________ 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 functional currency of the foreign subsidiary and the all-current-rate method to translate the financial statement accounts into the parent firm's currency. The all-current-rate method uses the current exchange rate for all balance sheet items and the average exchange rate for income statement items. This method aims to reflect the impact of foreign currency fluctuations on the financial statements.

FASB No 52 Is a Statement Issued by the Financial Accounting