Assuming no significant inflation, gains resulting from the process of translating a foreign entity's financial statements from the functional currency to U.S. dollars should be included as a(n):

Question

Quizplus · Accepted Answer

Gains from translating a foreign entity's financial statements from the functional currency to U.S. dollars are included in other comprehensive income, not in the net income, because they are unrealized and relate to the translation of financial statements rather than reflecting the entity's operational performance.

Assuming No Significant Inflation, Gains Resulting from the Process of Translating