Under the temporal method: common stock = translated at historical levels dividends = translated at historical levels Under the all current rate: common stock = current end of period rate ??? dividends = average rate ??? also, if the subsidiary’s currency is depreciating, how will this effect the parent’s cogs and depreciation under the current method? if the subsidiary’s currency is depreciating, how will this effect the parent’s common stock and dividends under the current method?
Common stock and Dividends are ALWAYS Translated at Historic rate, IRRESPECTIVE OF THE METHOD.
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