Assets and liabilities of a foreign subsidiary are translated into dollars on a consolidated balance sheet at the:

Question

Quizplus · Accepted Answer

Assets and liabilities of a foreign subsidiary are translated into dollars at the exchange rate in effect on the date of the financial statements, as it reflects the most current rate and is consistent with the concept of matching revenues and expenses. Anticipated or historical rates would not accurately reflect the current value of the assets and liabilities.

Assets and Liabilities of a Foreign Subsidiary Are Translated into Dollars