ABC Company, a U.S.-based MNC, uses the temporal translation method (see Chapter 6) in consolidating the results of its foreign operations. Translation gains or losses incurred upon consolidation are reflected immediately in reported earnings. Company XYZ, a Dutch MNC, employs the current rate method with translation gains and losses going into owners’ equity. What financial ratios are most likely to be affected by these different accounting principles, and what are the implications for security analysts?