- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 13. Multinational Operations
- Subject 3. Remeasurement: The Temporal Method
CFA Practice Question
Which statement about remeasurement is true?
A. Remeasurement refers to the accumulation of currency translation gains or losses in other comprehensive income.
B. Remeasurement gains or losses are recognized in current income.
C. Remeasurement arises when foreign currency exchange rates fluctuate and the company is in a net liability position.
Explanation: Remeasurement gains (losses) arise in connection with the temporal method. These gains (losses) affect current income.
User Contributed Comments 2
| User | Comment |
|---|---|
| MattNYC | what does remeasurement even mean?? |
| tabulator | man, hopefuly the previous comment was posted a LONG time ago... |