In CFAI EOC last question # 21 for “integration of financial statement analysis techniques”, the answer states that PDQ (parent company) is likely using US GAAP and Astana (associate) is likely using IFRS. I understand that PDQ is using LC=FC (therefore current method) while Astana is using FC=PC (therefore temporal method). I don’t understand the US GAAP vs IFRS portion of the response. I thought both translation methods are possible under US GAAP and IFRS. Using the info provided in the question vingette, how is one supposed to determine that one company is using US GAAP and the other IFRS?
Hey I don’t see this question for CFAI EOC
Are you using the 2016 version? Do you mind giving the exact page number?
Anyway, is the question related to hyperinflation?
Cheers