When the parent company of a foreign subsidiary believes that all of its investment in the subsidiary is exposed to foreign exchange risk, what method of translation should be used in consolidating the financial statements?
A. current rate method
B. current/noncurrent method
C. monetary/nonmonetary method
D. temporal method
Answer:A
When the parent company of a foreign subsidiary believes that all of its investment in the subsidiary is exposed to foreign exchange risk, what method of translation should be used in consolidating the financial statements?
A. current rate method B. current/noncurrent method C. monetary/nonmonetary method D. temporal method