Took a mini CFAI yesterday. Question asked me to deteremine ROE after translation using the all current method. Now Schweser says NI & Equity is translated at the average rate. But on the CFAI sample, it translated NI at the current rate… Which is correct? I would naturally say CFAI, but I’m fairly confident that there was a couple of questions on the CFAI exam that had an answer choice that shouldve been incorrect. Had to do with ethics and fixed income. The explanation basically contradicted the answer choice… One of the vignettes also had “tits” instead of its 
Remember the equity in that particular question did not have a retained earnings component. It was all Common Stock- which would be translated at Historic in either method. NI in the numerator- would be translated at the average rate.
Did it ask you to use the beginning balance of the equity? If not, common stock is historical then you have to figure out the value of R/E first by calculating NET INCOME and value of dividends
golfer Wrote: ------------------------------------------------------- > Did it ask you to use the beginning balance of the > equity? If not, common stock is historical then > you have to figure out the value of R/E first by > calculating NET INCOME and value of dividends Is there a sample proiblem of this? I havent come across a problem in which I have had to calculate this. Thx.