Translation of Foreign Revenue using Current Rate Method

A multinational corporation, ABC Ltd., has substantial operations in France and the United States. The company prepares its consolidated financial statements in USD and has significant revenues and costs incurred in euros. ABC Ltd. utilizes the current rate method for translating its financial statements.

During the most recent fiscal year, the following information was available:

• Revenue in euros: €10,000,000
• Expense in euros: €7,500,000
• Year-end exchange rate: 1.15 USD/EUR
• Average exchange rate for the year: 1.12 USD/EUR

Given this information, determine how revenue would be reported on the consolidated financial statements in USD using the current rate method.