if foreign currency is depreciating,
Can we say
Under current rate method must have negative translation adjustment(CTA is negative) in equity
Under temporal rate method, depends on the net monetary asset to decide the gain and loss in I/S?
My take:
Under current rate method must have negative translation adjustment(CTA is negative) in equity : I think it depends on company net equity (or net asset) position. In most cases the net equity is positive (undewise the company is insolvent/bankrupt), in which case its translation adjustment is negative.
Under temporal rate method, depends on the net monetary asset to decide the gain and loss in I/S? I Agree