标题: Last minute tip [打印本页] 作者: anothercfainnyc 时间: 2011-7-13 16:48 标题: Last minute tip
Here's what i use for translation adjustments.
The all-current method is easier than the temporal method, therefore adjustments start with the income statement(easy) and then go to BS, this results in translation gains and losses showing up in the BS.
The Temporal Method is Hard, you start with the BS(hard) and go to the IS, translation gains and losses show up in the IS. This makes the temporal method more volatile to Net income.
These are good for those questions that ask about NI under the Temporal method. When you have a net Monetary liability and appreciating local currency NI will be lower because of translation losses.
