A foreign subsidiary's functional currency is its local currency which has not experienced significant inflation. The weighted average exchange rate for the current year would be the appropriate exchange rate for translating:

Question

Quizplus · Accepted Answer

The weighted average exchange rate for the year is typically used for translating income statement items such as wages expense and sales to customers, as these reflect operations over the entire period rather than a specific point in time.

A Foreign Subsidiary's Functional Currency Is Its Local Currency Which