One of the major differences between translation methods is which balance sheet components are translated at which exchange rates, current or historical. Why would accounting practices ever use historical exchange rates?

One of the major differences between translation methods is which balance sheet components are translated at which exchange rates, current or historical. Why would accounting practices ever use historical exchange rates?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter2: International Flow Of Funds

Section: Chapter Questions

Problem 2IEE

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A8) One of the major differences between translation methods is which balance sheet components are translated at which exchange rates, current or historical. Why would accounting practices ever use historical exchange rates?

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