A gain resulting from translating foreign currency financial statements (local currency is functional currency) into U.S. dollars should be reported as: a. a stockholders' equity adjustment from translation b. a deferred item in the balance sheet c. an extraordinary item in the income statement for the period in which the rates change d. an ordinary item in the income statement
Added by Silvia P.
Step 1
S. dollars, any gain or loss resulting from the translation is recognized in the income statement. In this case, since the local currency is the functional currency, the gain resulting from the translation should be reported as an ordinary item in the income Show more…
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