In the Functional or Current Method of Translation from Functional

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The Answer is The steps for translating financial statements are:
(1)Adjust the financial statements of the foreign entity to conform with Generally Accepted Accounting Principles.
(2)Identify the functional currency,
(3)Translate the financial statements to the domestic entity's reporting currency.
a.All assets and liabilities are translated at the current rate on the translation date
b.Elements of income are translated at the current rates at the time of income recognition or at a weighted average exchange rate
c.Equity accounts other than Retained Earnings are translated at historical rates on date of investment
d.Retained Earnings is translated in layers
e.Components of the Statement of Cash Flows are translated at the exchange rates in effect at the time of the cash flows.
f.The translation process will result in a cumulative translation adjustment which is classified as a component of other comprehensive income (OCI).

In the Functional or Current Method of Translation from Functional

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