My recollection from CFAI readings is that Shareholders equity accounts are translated using the historical rate under both the all-current and temporal methods. I have however encountered a number of questions in the Qbank saying the S.E accounts are translated using a current rate…i forget exactly where. Anyone seen this? The correct treatment under both methods is Historical rate… right?
yes it should be historical for both unless told to use other rate
the common stock is translated/remeasured at historical rate. The entire equity piece, however, is translated/remeasured at ? Average rate?
tvPM Wrote: ------------------------------------------------------- > the common stock is translated/remeasured at > historical rate. The entire equity piece, however, > is translated/remeasured at ? Average rate? I hope I get this right Equity as a whole: All-Current - Current Rate. The CTA balances the Common Stock Temporal: Mixed. Plug the translation adjustment from the Income satement
The aggregate equity is at the current rate (equity includ. CTA). You plug the RE in and you have the current rate for the agg… A = L + E (or something like that). dan beat me to it