Which of the following is true when accounting for the foreign currency transactions of a U.S. company? Multiple choice question. It can report its foreign currency transactions either in U.S. dollars or in the local currency if the amount involved is less than $2 million. The transactions denominated in other currencies must be restated to their U.S. dollar equivalents. As per U.S. GAAP, a U.S. company can report its foreign currency transactions either in U.S. dollars or in the local currency. The transactions denominated in foreign currencies are included in the financial statements in the foreign currencies.
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S. GAAP. U.S. GAAP requires that all foreign currency transactions be reported in the functional currency of the reporting entity, which for a U.S. company is typically the U.S. dollar. Show more…
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