Consolidations and Foreign Currency

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Question

When do you use translation instead of remeasurement?

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Answer

When books are in the functional currency but reporting is in another currency.

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Question

How are nonmonetary items treated under the temporal method?

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Answer

At historical rates.

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Question

How are intercompany receivables, payables, loans, and interest treated in consolidation?

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Answer

They are eliminated in full.

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