How a translation loss arises

Reference no: EM13132778

Which of the following best explains how a translation loss arises when the temporal method of translation is used to translate the foreign currency financial statements of a foreign subsidiary?

A. The foreign subsidiary has more monetary assets then monetary liabilities, and foreign currency appreciates in value.

B. The foreign subsidiary has more monetary liabilities then monetary assets, and foreign currency depreciates in value.

C. The foreign subsidiary has more monetary assets then monetary liabilities, and foreign currency depreciates value.

D. The foreign subsidiary has more total assets then total liabilities, and the foreign currency appreciate in value.

Reference no: EM13132778

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