Assume the currency of the subsidiary is depreciating and there is a translation loss under temporal method. Shouldn’t the Net Income under all-current method be higher than the net income under temporal, because all-current net income does not include the translation loss?
If the currency is depreciating then entries using historical rate will be more than entries using the current or average rate. Given that the current method uses all average rates, and the temporal used average for some things but the historical rate for things like depreciation, cogs => then Net Income under temporal method should be less. So yes i agree with you