Once you translate your BS and IS using the temporal method, how do you know whether you have a net asset exposure or a net liability exposure?
You do the math on the local currency, not on the translated.
If your monetary asset is 500 and your monetary liability is 1000, then you have a net liability exposure of 500.
You know even before translation… If your monetary assets exceed monetary liabilities you have a net monetary asset exposure. However if this is not the case you have a net monetary liability exposure