Unrealized g/l - Temporal vs Current Rate

Dear all,

I was doing EOC for multinational companies and one of the solutions mention that temporal method ignore unrealized gain/loss whereas current rate does not. Can someone tell me which page in the curriculum mention about this? I read through but did not manage to find it.





Someone will correct if I am wrong. I think under the temporal method the translation goes directly through the P&L so no “cumulative unrealised FX gain/loss” line is created. While under the current rate it goes through the OCI into the “cumulative translation adjustment”.