Please help me to understand this question better. Thanks

Accounting
Tutor: None Selected Time limit: 1 Day

100% original work only.  3 to 5 sentences.

Analyze the underlying conceptual differences between the temporal method of translation and the current rate method of translation. Determine how the balance sheet exposure differs under the two (2) aforementioned methods. Select the method that you believe provides the least balance sheet exposure. 

Aug 21st, 2015

Thank you for the opportunity to help you with your question!

It is basically asking you to analyze the differences between the temporal method of translation and the current rate method of translation (I am not sure what those terms are, maybe related to Accounting so, you should research the differences of those two terms and answer it in your). I explained the second part of the question in my paraphrased prompt which is about the balance sheet and it is the second sentence.

Please read the below prompt (bold), I paraphrased most of the words in an understandable way. So, this should be helpful to you.

Break down the basic reasonable differences between the temporal method of translation and the current rate system of translation. Decide how the balance sheet varies under the two (2) previously stated strategies. Select the system that you think provides the least balance sheet exposure.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 21st, 2015

Also, you can say instead of "decide," you can also use the word "Determine.

Aug 21st, 2015

Thank you for responding.  This is a discussion question about accounting, so therefore need to answer the question.  

Aug 21st, 2015

Then I will answer it

Aug 21st, 2015

Thank you.  Sorry I was not clear.

Aug 21st, 2015

Is it fine if I answer it in the discussion

Aug 21st, 2015

It is okay.

Aug 21st, 2015

You said "

Please help me to understand this question" So I thought of explaining the prompt clearly.

Aug 21st, 2015

You can include these differences in your answer, where the question asked the difference

Temporal method: It is used when the functional currency and the local currency are different. 

Current rate method: It is used when functional currency and the presentation currency are different.


Aug 21st, 2015

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Aug 21st, 2015
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Aug 21st, 2015
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