CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following statements about the current rate method of foreign currency translation is (are) correct?

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
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