For multinational companies, stockholders' equity in the foreign subsidiaries' financial statements is in U.S. dollars at the historical exchange rate on the date of the financial statements.

Question

Quizplus · Accepted Answer

Stockholders' equity in the foreign subsidiaries' financial statements is usually translated into the parent company's reporting currency at the current exchange rate on the balance sheet date, not the historical exchange rate. This is done to reflect the current value of the equity in the parent company's reporting currency.

For Multinational Companies, Stockholders' Equity in the Foreign Subsidiaries' Financial