FSA: exposure under all current method and temporal method

if equity >0, the an apprecial of LC will result in a tranlation gain under current method. It dosen’t depend on the whether equity from preivous year decreased or increased. if AR+cash - current liability -long term debt <0, an appreciating in local currency will result in a translation loss under temporal method, it doesn’t matter wheather the it increased from previous year or not. is this statement correct? Thanks