FASB Statement No. 52 provides guidelines for the translation of foreign currency financial statements by U.S.-based multinational corporations. The appropriate translation method and disposition of translation adjustment depends upon the functional currency of the foreign entity. Discuss FASB Statement No. 52 and within your discussion, explain what is the functional currency and discuss the indicators listed for SFAS 52 that are to be used in determining an entity's functional currency. In your opinion, does Statement No. 52 lead to smaller fluctuations in operating income and much smaller fluctuations in net income in response to changes in exchange rate. Explain why or why not.Thoroughly explain your thoughts regarding why or why not.

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The financial accounting standard Boards statement No52 on foreign currency translation introduce th... View the full answer