If a Parent Company Has a Subsidiary in a Country

question 43

Multiple Choice

If a parent company has a subsidiary in a country where the cumulative rate of inflation for the past three years is around 100 percent, which translation methodology would they use under FASB Statement No. 52?

• A) the temporal method.
• B) the temporal method after adjusting for inflation.
• C) the current rate method.
• D) the current rate method after adjusting for inflation.

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Definitions:

Community Psychology

A field of psychology focused on understanding and enhancing the well-being of communities through research and intervention.

Positivism

A philosophy that asserts the only authentic knowledge is scientific knowledge, and such knowledge can only come from positive affirmation of theories through strict scientific method.

Research Findings

The outcomes and conclusions derived from systematically conducted research studies.

Physical Disabilities

Impairments that substantially limit one or more of an individual's major life activities, involving mobility, coordination, or physical functioning.