in accordance with both IFRS and U.S. GAAP, choose what is the treatment of the translation...
in accordance with both IFRS and U.S. GAAP, choose what is the treatment of the translation adjustment under the Current Method?
1. it appears on the Income Statement as a gain or loss
2. it appears on the Balance Sheet in the owners equity section.
Homework Answers
It is a method of conversion in which current rate is
utilised.Currency translation is process of converting financial
results of subsidiary co into functional currency .This method is
used when subsidiary company is independent from parent
co.
Now in this case assets & liabilities are shown at current exchange rate.The difference arises shown in Balance sheet as reserve.
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