Matching Key TermsMatch the items in the left-hand column with the descriptions/explanatio...

Items

Descriptions/Explanations

1.

Current exchange rate

A.

Method used to restate a foreign entity’s

2.

Foreign entity goodwill under translation

financial statement when the local currency

3.

Increase in the translation adjustment for

unit is the functional currency.

the year

B.

Method used to restate a foreign entity’s

4.

Other comprehensive income—

financial statements when the U.S. dollar is

translation adjustment

the functional currency.

5.

Translation

C.

Currency of the environment in which an

6.

Historical exchange rate

entity primarily generates and expends cash.

7.

Foreign entity goodwill under

D.

Is always the local currency unit of the

remeasurement

foreign entity.

8.

Remeasurement

E.

Exchange rate at the end of the period.

9.

A decrease in the translation adjustment

F.

Exchange rate at the date of the asset

for the year

acquisition or at the date of dividend

1 0.

Functional currency

declaration.

G.

Average exchange rate during the period.

H.

Periodic change in the cumulative

translation adjustment.

I.

Method under which goodwill must be

adjusted to the current exchange rate at

the balance sheet date.

J.

Method under which goodwill is restated

using the historical exchange rate.

K.

Increase of the exchange rate during

the year.

L.

Decrease of the exchange rate during

the year.