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Basic Question 7 of 7
Cumulative translation adjustment is:
B. the adjusting entry necessary to recognize the impact of foreign exchange on net income.
C. the gain or loss from foreign currency translation accumulated over the fiscal period.
D. the change in the functional currency over the period.
E. the change in the net asset position of the firm for the period.
A. the gain or loss accumulated over the entire life of the firm.
B. the adjusting entry necessary to recognize the impact of foreign exchange on net income.
C. the gain or loss from foreign currency translation accumulated over the fiscal period.
D. the change in the functional currency over the period.
E. the change in the net asset position of the firm for the period.
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | hence cumulative |
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Barnes
Learning Outcome Statements
compare the current rate method and the temporal method, evaluate how each affects the parent company's balance sheet and income statement, and determine which method is appropriate in various scenarios;
calculate the translation effects and evaluate the translation of a subsidiary's balance sheet and income statement into the parent company's presentation currency;
CFA® 2025 Level II Curriculum, Volume 2, Module 12.