Hi folks,
Got a bit confused. it says that for both Temporal and Current translation methods, the Equity is translated at historical cost.
However, in example 7, Reading 16, implementing IFRS standard during inflationary times (which combines restatement for inflation indexes and then translating using CURRENT method), even the equity (common stock) is translated at the current exchange rate (the rate at the ending period).
Can anyone please explain me this illogic approach used in example 7?
Thanks