Hi, they make the following statement from EOC question 6 in the CFA Reading 18.
"Believes Euro will appreciate, i.e. foreign currency depreciate ( Current Rate Method) and all gains or losses from translation are reported as a cumulative translation adjustment to shareholder equity. When the foreign currency decreases in value (weakens), the current rate method results in a negative translation adjustment in stockholders’ equity. "
However from the information provided I am not able to see if they have net asset or net liability exposure. But for the statement above to be correct, a net Asset exposure is required, is that correct? Thanks for the help. Also if anyone happens for to have the CFA curriculum and are able to explain how I can identify a net A or net L exposure in this question from the information provided in the question text that would be much appreciated.