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This is simply the difference between exposed assets and exposed liabilities. The controversies among accountants centre on which assets and liabilities are exposed and on when accounting derived foreign exchange gains and losses should be recognized (reported on the income statement) given the fact that such gains or losses are of an accounting nature that is,no cash flows are involved. Four principal
translation methods are available: the current/noncurrent method, the monetary/nonmonetary
method, the temporal method, and the current rate method.
maurice.mutuku answered the question on April 25, 2019 at 06:15