The students are asked to review and summarize the accounting rules regarding the current rate method to give them the necessary background to translate the foreign subsidiary's financial information so it can be consolidated. The relevant accounting guidance includes FASB ASC 830-30 (i.e., SFAS 52) and IFRS IAS 21. The basic rules for applying the current rate method under FASB ASC 830 and IAS 21 are summarized in general language (FASB 2009; IASB 1993). Given that the functional and reporting currency of FFI's parent company is the USD, students may write responses from FFI's perspective. As future professionals, students are encouraged to cite the standards, as long as they properly acknowledge that the wording comes from the standards and is not their own writing.

The general rules for translating a foreign subsidiary's results are as follows:

Students are required to obtain recent financial statements of a major...

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