Under FASB ASC 830, Foreign Currency Matters, When the Temporal

question 39

Multiple Choice

Under FASB ASC 830, Foreign Currency Matters, when the temporal method is used, how are translation adjustments treated in the consolidated financial statements?

• A) As gains or losses on the current period consolidated income statement
• B) As prior period adjustments to retained earnings of the parent
• C) As part of other comprehensive income on the consolidated balance sheet
• D) None of the above because the temporal method is not allowed under FASB ASC 830.

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Definitions:

Gate Control Theory

A theory that suggests the spinal cord contains a neurological "gate" that controls the transmission of pain signals to the brain.

Chronic Pain

Persistent or recurring pain that lasts longer than the typical recovery period or associated with chronic health conditions.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, transmitting neural signals between the brain and the rest of the body.

Neuromatrix Theory

A theory suggesting that pain is a multidimensional experience produced by characteristic "neurosignature" patterns of nerve impulses generated by a widespread network of neurons in the brain.