Which method should I use if the question states the following (assuming US is local):
Presentation currency of parent company is USD. (I think temporal will be used) Most of the business transactions of the foreign subsidiary is in ‘insert foreign currency’ (I think current will be used)
I’m leaning towards current because the subsidiary is independent since most of the business is done in the foreign currency.
Also, one more quesiton. To find the adjustment or gain/loss I have to translate both the balance sheet and income statement. Is there a faster way? I would assume that one of the questions will be for you to find the gain/loss and translating both statements is time-consuming.