Under the temporal method of translation, all balance sheet items that are carried at current or future exchange prices are translated at the current exchange rate, while items carried at past prices are translated at exchange rates existing at the time the item was acquired.

Question

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The temporal method translates monetary items at the current exchange rate, while non-monetary items that are carried at historical cost are translated at the historical exchange rate. This method aims to maintain the historical cost principle for assets and liabilities.

Under the Temporal Method of Translation, All Balance Sheet Items