FSA: If the subsidiary has a liability exposure on its balan net, its, liability, currency, against

gjcxc

If the subsidiary has a net liability on its balance sheet (monetary assets are less than monetary liabilities), and the subsidiary’s currency is weakening against the parent’s currency, WHY WOULD THIS RESULT IN A POSITIVE TRANSLATION ADJUSTMENT?

DarienHacker

Thanks for responding.
I just want to be sure I get this correctly.
If the translated liability decreases in value due to currency translation, this results in a positive translation adjustment…is that correct?