FAR Final Review

Question 1

How are income statement items using foreign currency recognized under the translation method?

Answer 1

At weighted-average

Question 2

Under the remeasurement method, how are non-monetary assets revalued?

Answer 2

Using the historical exchange rate on date of purchase or issuance; all monetary accounts will be revalued using the current (spot) rate

Question 3

How are balance sheet items using foreign currency recognized under the translation method?

Answer 3

Assets and liabilities at the spot rate and common stock at the historical rate