Under a historical cost accounting system, as the United States now has, most accounting theoreticians would probably argue that the appropriate method for translation is the

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Under historical cost accounting system, the appropriate method for translation is the temporal method. This method translates monetary assets and liabilities using the exchange rate at which they were originally acquired, while non-monetary assets and liabilities are translated at the current exchange rate. This method ensures consistency with the historical cost principle, which states that assets and liabilities should be recorded at their original cost.

Under a Historical Cost Accounting System, as the United States