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CFA Level 2
Financial Reporting and Analysis

Translation of Income Statement Items Using Current Rate Method

Very Easy Multinational Operations Translation Methods

ABC Corporation operates in several countries and reports its financial statements in US dollars. In preparing its consolidated financial statements, the company needs to translate the financial results of its foreign subsidiaries. One of the methods used for translation is the current rate method.

According to the current rate method, which exchange rate is used to translate the income statement items?

Hint

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