Hi everyone,
I stumble on this table that compares Currency Translation adjustment effects on Temporal vs Current Rate method from SchweserNotes book vs CFA textbook. I looked at both tables multiple times and notice there is a big discrepancy between the two.
I highlighted one example that is Local Currency depreciating = Foreign Currency strengthens under Net Monetary Liabilities (Temporal). SchweserNote’s version said it is a Gain whereas CFA Curriculum said it is a Loss.
Does this means the ScheweserNotes’ table had a serious typo that the table should be labelled as Foreign Currency instead of Local Currency?
I know the CFA textbook should have superiority over other third-party providers but I’ve been relying on ScheweserNotes’ table when dealing with questions and got correct. so I am now confuse which one should I refer to.
Appreciate your thoughts and comments. thanks!