TRANSLATION OF FINANCIAL STATEMENTS OF FOREIGN AFFILIATES
LEARNING OBJECTIVES
Distinguish between the current exchange rate and the historical exchange rate.
Understand the objectives of financial statement translation.
Identify the functional currency of a foreign entity.
Compare the two methods used to convert the financial statements of a foreign entity into U.S. dollars.
Distinguish between the circumstances under which each of the two methods is appropriate under current GAAP.
Explain the factors involved in translating the statements of a foreign entity operating in a highly inflationary economy.
Translate the statements of a foreign entity when the functional currency is the local ...
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