firat

To make your life simple, tell yourself this;

REGARDLESS of method, they all use these same rules:

Assets & Liability - Current Rate
Equity - Historical Rate

Revenues - Average
Expenses - Average

This intuitively makes sense, Revenues & Expenses occur throughout the year so you want to reflect the Average Rate. Equity should be recorded when the transaction took place. And B/S accounts should reflect the reporting period.

The only EXCEPTION is Temporal applies HISTORICAL rates to NON-MONETARY B/S items & expenses.

B/S include: inventory, PP&E, intangibles, defferred rev, etc
Expenses include: COGS, D&A