Under the current rate method, all the expenses are translated using some form of current-period exchange rate.

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Under the current rate method, all the expenses are translated using some form of current-period exchange rate. Under the temporal method, some expenses such as salaries and utilities are translated using current rates but others, such as cost of goods sold and depreciation expense, use historical rates. Why are different rates used between the two methods? After all, they are all expenses.

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Advanced Accounting

ISBN: 9780132568968

11th Edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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