Translation exposure measures

Under the current rate method, specific assets and liabilities are translated at exchange rates consistent with the timing of the item's creation.

A/an …….subsidiary is one in which the firm operates as an extension of the parent company with cash flows highly interrelated with the parent.

A foreign subsidiary's ………currency is the currency used in the firm's day-to-day operations.

The basic advantage of the …….. method of foreign currency translation is that foreign nonmonetary assets are carried at their original cost in the parent's consolidated statement while the most important advantage of the ……… method is that the gain or loss from translation does not pass through the income statement.

According to your authors, the main purpose of translation is

The two basic methods for the translation of foreign subsidiary financial statements are the…….method and the …….. method.