Under FASB 52, consolidated earnings are sensitive to the functional currency's weighted average exchange rate.

Question

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FASB 52 requires the use of the functional currency's weighted average exchange rate for the translation of foreign currency financial statements. This can have an impact on consolidated earnings as the exchange rate used can affect the value of foreign assets and liabilities, resulting in gains or losses.

Under FASB 52, Consolidated Earnings Are Sensitive to the Functional