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When using the current rate method, the translation adjustment from translating a foreign subsidiary’s financial statements should be shown as

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When using the current rate method, the translation adjustment from translating a foreign subsidiary’s financial statements should be shown as

A) An asset or liability (depending on the balance) in the consolidated balance sheet.

B) A revenue or expense (depending on the balance) in the consolidated income statement.

C) A component of stockholders’ equity in the consolidated balance sheet.

D) A component of cash flows from financing activities in the consolidated statement of cash flows.

E) An element of the notes which accompany the consolidated financial statements.

Answer: C 

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