Brass Ltd$.$ has a different functional currency than the parent. From $2010$ to $2021,$ the country in

which the subsidiary is located experienced a very low level of inflation. Beginning in $2022,$ the

country has experienced a very high level of inflation. Which method should be used to translate

the financial statements of the subsidiary for the year ended December $31,2022?$

Multiple Choice

The functional currency translation $($FCT$)$ method should be adopted in place

of the presentation currency translation $($PCT$)$ method, and the change should

be accounted for retroactively.

The presentation currency translation $($PCT$)$ method should be adopted in

place of the functional currency translation $($FCT$)$ method, and the change

should be accounted for retroactively.

The functional currency translation $($FCT$)$ method should be adopted in place

of the presentation currency translation $($PCT$)$ method, and the change should

be accounted for prospectively.

The presentation currency translation $($PCT$)$ method should be adopted in

place of the functional currency translation $($FCT$)$ method, and the change

should be accounted for prospectively.