Foreign currency translation adjustments arising from translation of the financial statements of a foreign subsidiary are reported in

Question

Quizplus · Accepted Answer

Foreign currency translation adjustments are reported in the stockholders' equity section of the consolidated financial statements of the parent company. This adjustment reflects the change in value resulting from translating the financial statements of the foreign subsidiary from its functional currency to the parent company's reporting currency. The adjustment is not reflected in the subsidiary's financial statements or the parent company's income statement. Therefore, choice D is the correct answer.

Foreign Currency Translation Adjustments Arising from Translation of the Financial