CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Foreign subsidiaries of U.S. parent companies that operate in highly inflationary economies are required by SFAS 52 to use which method for translating the financial statements:

A. Temporal Method, with the Translation Gain or Loss to be reported as part of Comprehensive Income.
B. Current Rate Method, with the Cumulative Translation Adjustment to be reported as part of Comprehensive Income.
C. Temporal Method, with the Translation Gain or Loss to be reported as part of Net Income.
D. Current Rate Method, with the Cumulative Translation Adjustment to be reported as part of Net Income.
E. Equity Method, with the Translation Gain or Loss to be reported as part of Noncontrolling Interest in Subsidiary.
Correct Answer: C

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