Generally speaking, translation methods by country define the translation process as a function of what two factors?

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

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

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.

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.

The current rate method of foreign currency translation gains or losses resulting from remeasurement are carried directly to current consolidated income and thus introduces volatility to consolidated earnings.

Translation exposure measures