[lindjlny]

Does anybody know the answer to the question below? Any help would be great.

“Under FAS 52, which mandates the functional currency approach, which rate method would be used to translate the following:

(a) Assets and liabilities;

(b) Equity accounts;

(c) Income Statement”

[super_cpa]

Assets and liabilities are translated at current rate aka spot rate at the balance sheet date. Owner's equity is translated at historical rate. Retained earning, however, requires a calculation. Revenues, expenses, gains, losses are translated at weighted average rate for the year.

Extra information: Foreign currency gain or loss is shown as a part of other comprehensive income.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[super_cpa]

Assets and liabilities are translated at current rate aka spot rate at the balance sheet date. Owner's equity is translated at historical rate. Retained earning, however, requires a calculation. Revenues, expenses, gains, losses are translated at weighted average rate for the year.

Extra information: Foreign currency gain or loss is shown as a part of other comprehensive income.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[Author]

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