scarecrow

Remember that -- in the Current Rate method --

1. Common Stock is valuated at the Historical Rate.
2. Total Assets are valued at Current Rate
3. Total Liabilities are valued at Current Rate.

4. So using 2 and 3 above - Equity = TA - TL would be valued (as a whole) at the Current Rate. That statement is correct.

Now the apparent discrepancy between the statement 1 and 4 - is what shows up in the adjustment Cumulative Translation Adjustment (CTA) entry which is a part of the Equity as well.

CP