Multinational operations - high inflation and the current rate method

CFA Level II FRA
#1

So I think I already started hitting the wall…

In example 7 of the CFA curriculum, after adjusting figures for inflation, and using the current exchange rate method, I noticed that the exchange rate used is that of the 31/Dec/20X1, and not the Average, 20X1.

So what am I missing? I’m guessing it has to do with the difference between “current exchange rate” and the “current rate method”?

There’s clearly an idea that I’m not able to grasp… so please… help!

#2

You have answered your own question.

The current exchange rate will be applied to all the items in case of hyper inflation.

This is the major difference from “applying current rate method”.

#3

I guess I needed confirmation then… Thanks!!