Please answer the following discussion and add each referencesAcc401 -8I-Analyze the underlying conceptual differences between the temporal method of translation and the current rate method...

Acc 401-8
Different methods of translation
There are two methods of translation of foreign subsidiary balances into reporting currency of parent company i.e. current rate method and temporal method. Under temporal method, two different approaches or exchange rates are followed for translation of accounts. For Monetary items such as receivables, cash and bank balances the current exchange rate is used whereas for non-monetary items such as inventory and fixed assets historical exchange rate is used. Under temporal method, the balance sheet items are more sensitive to foreign exchange rate fluctuations because the non-monetary items are recorded at historical rates and due to change in exchange rates the items may not reflect true value of assets and liabilities in reporting currency. Under current rate method of translation, all assets and liabilities are converted at current exchange rate. Under this method, the balance sheet items are very less exposure to exchange rate fluctuations because all the items are recorded at current value. This method also represent true value of assets and liabilities and also reduces potential distortions caused due to change in exchange rates.
The current method is a more accurate method for translation of balances because it covert the value of all assets and liabilities at current value. Further, the choice of method is also dependent upon various other factors such as regulatory aspects, nature of business and exposure of risk of currency exchange fluctuation and we recommend to use current method of...