What is the formula for translation gain or loss in all current method? I am reading pg 171 volume 2 financial statement analysis. If we assume 2000 as base year and for 2001 this is how it was calculated v1 = (net assets 01/ currency at y1- net assets 00/currency at y0) v2 = (net assets01- net assets 0)/Average rate v3 = netincome y1/average rate y1 translation gain or loss = v1 + v3 -v2 However I saw following forumal in schwer holdingEffect = opening net assets * (closing rate - opening rate) flow effect = increase in net assets *(closing rate - average rate) translation gain = holding effect + flow effect It looks like both may give same value. I don’t know why. Could you please let me know what I am missing? Thanks