Using the temporal method of translating foreign currency financial statements, what basis should be employed when using the “lower of cost or market” rule for inventory valuation?
A. lower of parent currency cost or parent currency market at current exchange rate
B. lower of subsidiary currency cost or subsidiary currency market at appropriate exchange rate
C. lower of parent currency cost or parent currency market at appropriate exchange rate
D. lower of subsidiary currency cost or parent currency market at current exchange rate
Answer:C
Using the temporal method of translating foreign currency financial statements, what basis should be employed when using the “lower of cost or market” rule for inventory valuation?
A. lower of parent currency cost or parent currency market at current exchange rate B. lower of subsidiary currency cost or subsidiary currency market at appropriate exchange rate C. lower of parent currency cost or parent currency market at appropriate exchange rate D. lower of subsidiary currency cost or parent currency market at current exchange rate