ABC Company, a U.S.-based MNC, uses the temporal translation method (see Chapter 6) in consolidating the results

Question:

ABC Company, a U.S.-based MNC, uses the temporal translation method (see Chapter 6) in consolidating the results of its foreign operations. Translation gains or losses incurred upon consolidation are reflected immediately in reported earnings. Company XYZ, a Dutch MNC, employs the current rate method with translation gains and losses going into owners’ equity. What are most likely to be affected by these different accounting principles, and what are the implications for security analysts?

Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...