1. What are the major issues related to the translation of foreign currency financial statements?

2. How is the cost of goods sold calculated under the temporal method vs. the current rate method?

3. If the functional currency for a foreign operation is the foreign currency, which translation method would be used and where would the translation adjustment report?

4. If the functional currency for a foreign operation is the US dollar, which translation method would be used and where would the translation method be reported?

5. Under the US GAAP, which translation method is required for a highly inflationary economy and why?

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