Is there a rule here that I just haven’t picked up? I previously thought you always multiply each IS or BS line item by the respective average/historical/current rate to get the translated figure.
But on Schweser Exam 2, Volume 2, Question 20, the depreciation expense is divided by the historical rate, not multiplied.
Q: Assuming that International Oilfield’s equipment is depreciated using straight-line method over ten years with no salvage value, calculate subsidiary’s 2008 depreciation expense under the temporal method.
Is there a rule that I have missed the entire time here? I scanned the old Schweser FSA book and all the examples translate line items by multiplying them by the rate, not dividing.