The Two Methods for the Translation of Foreign Subsidiary Financial

question 9

Essay

The two methods for the translation of foreign subsidiary financial statements are the current rate and temporal methods. Briefly, describe how each of these methods translates the foreign subsidiary financial statements into the parent company's consolidated statements. Identify when each technique should be used and the major advantage(s) of each.

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Definitions:

Oral Comments

Feedback or remarks conveyed verbally rather than written.

Consideration

A leadership behavior characterized by showing concern for followers' well-being, respecting their feelings, and displaying empathy and support.

Behavior Category

A classification of actions or responses according to specific criteria or characteristics, often used in psychology and organizational studies to understand patterns of behavior.

Relationships

The connections or associations between individuals or entities based on bonds of friendship, family, work, or other social scripts.