A Philippine Corporation has a Thailand subsidiary, Hototay, Inc. whose functional currency is the Thailand Baht. At December 31, 2017, Hototay has an account receivable denominated in Korean Won.

Which one of the following statements is true?

a.The account receivable is first adjusted to reflect the current exchange rates in Thailand Baht and then translated at the current rate into pesos

b.The account receivable is adjusted to bath at the current exchange rate and any resulting gain or loss is included as a translation adjustment in the stockholders' equity section of the subsidiary's separate balance sheet

c.Because all accounts of the subsidiary are translated into Philippine peso at the current rate, the account receivable is not adjusted on the subsidiary's books before translation

d. The account receivable is remeasured into the functional currency and remeasurement obviates translation