Financial Accounting Standard Statement Number 52 requires that most assets and liabilities be translated at the current exchange rate. Gains and losses are recorded:

Question

Quizplus · Accepted Answer

Gains and losses from the translation of foreign currency financial statements under Financial Accounting Standard Statement Number 52 are recorded against shareholder's equity, specifically in a component of equity called accumulated other comprehensive income. This approach avoids impacting the volatility of net income due to changes in exchange rates.

Financial Accounting Standard Statement Number 52 Requires That Most Assets