Gains and losses from foreign currency transactions which are designated as economic hedges of a net investment in a foreign subsidiary are recorded as translation adjustments of stockholder's equity.

Question

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This statement is true. Gains and losses from foreign currency transactions which are designated as economic hedges of a net investment in a foreign subsidiary are recorded as translation adjustments of stockholder's equity on the balance sheet. This accounting treatment is in accordance with US GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

Gains and Losses from Foreign Currency Transactions Which Are Designated