Equity under Current rate method and Temporal method only, multiple, accounts, average

dotamasta

I am confused. according to multiple schweser feedback to questions.
?Under the current rate method, the equity accounts as a whole are translated at the current rate whereas net income is translated at the average rate.
? Equity under the temporal method is a mixed rate
I thought.
* Common stock under both current rate and temporal method were historical rate. in fact, isnt that the only account on the balance sheet that is not current rate in Current rate method ??
I agree with the temporal method though. because cogs, depreciation are historical so NI would be mixed rate under temporal method.
can anyone explain the discrepancy in the current rate method regarding equity.

towardsutopia21

“under the current rate method, the equity accounts as a whole are translated at current rate”
this doesnt seem right to me. i agree with you that common stock is translated over at the historical rate under both methods. where did you find this statement?

Nishant1

I see the reasoning for this…
All Assets and Liabilities are translated at the Current Rate. Since Equity as a whole = Assets - Liabilities - It must be as a whole translated at the Current Rate.
Otherwise the numbers would not match.
Now Equity (Current Rate) = Common Stock (Historical) + RE End + CTA Adjustment.
RE End = RE Begin + NI (Average Rate) - Dividends
RE Begin and Dividends must be provided in the Local Currency, otherwise they are assumed to be 0.