Financial statements that cover operations in two or more countries do NOT need to treat fluctuations consistently.

Question

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Financial statements that cover operations in two or more countries must apply consistent accounting policies for currency translation and treatment of fluctuations in order to provide meaningful and comparable information. Failure to do so may result in distorted financial results and misinterpretation by users of financial statements. Therefore, it is important to apply consistent standards and methods to avoid confusion and misleading information.

Financial Statements That Cover Operations in Two or More Countries