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Basic Question 6 of 7

Which of the following foreign currency translation methods is allowable under current U.S. GAAP?

A. Current/Noncurrent method.
B. Monetary-Nonmonetary method.
C. Temporal method.

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Learning Outcome Statements

compare the current rate method and the temporal method, evaluate how each affects the parent company's balance sheet and income statement, and determine which method is appropriate in various scenarios;

calculate the translation effects and evaluate the translation of a subsidiary's balance sheet and income statement into the parent company's presentation currency;

CFA® 2025 Level II Curriculum, Volume 2, Module 12.