- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 12. Multinational Operations
- Subject 4. Translation: The All-Current Method
CFA Practice Question
Which of the following statements about the current rate method of foreign currency translation is (are) correct?
II. It emphasizes the presentation currency aspects of a foreign investee's operations.
III. It requires use of the current exchange rate for translating all financial statement amounts of the foreign investee.
I. It is generally accepted in the United States.
II. It emphasizes the presentation currency aspects of a foreign investee's operations.
III. It requires use of the current exchange rate for translating all financial statement amounts of the foreign investee.
Correct Answer: I only
User Contributed Comments 3
| User | Comment |
|---|---|
| mysking | why not ii? |
| jmcarr02 | Not II) because the foreign investee operates with a 'functional currency' not a 'reporting currency' which is the currency of the investor, not the investee. |
| davidt876 | II = temporal method |