CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following statements about the temporal method is false?
A. Equipment is translated at historical exchange rates, and long-term debt is translated at current exchange rates.
B. The temporal method gives rise to remeasurement gains (losses) that are reported in current income.
C. The temporal method gives rise to translation gains (losses) that are accumulated in other comprehensive income.
Explanation: Translation gains (losses) arise in connection with the current rate method, not the temporal method.

User Contributed Comments 2

User Comment
kingma temporal-remeasurement gain/loss-current income(P/L);
all current-translation-other comprehensive income(equity)
yxten1 thanks for the summary
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