5-7 paragraphs with the references. Compare and contrast the 4 currency translation methods. Which 2 methods are used by FASB 52? Be sure to discuss the 2-step method used in FASB 52 and how highly...

SOLUTION:
There are four currency translation methods which are given as follows:
1. Current / Non-Current Method: In this method, current exchange rate is used by current
accounts for conversion. The average exchange rate is used by the income statement
accounts.
2. Monetary / Non-Monetary Method: Monetary accounts like cash, accounts payable,
accounts receivable, long term debt uses the current rate. The non-monetary account like
inventory, fixed assets, long term investments uses the historical rates. The average
exchange rate is used in the income statement accounts.
3. Temporal Method: This method is quite similar to the monetary/ non-monetary method.
It uses the current method for inventory accounts.
4. Current...