Foreign Currency Translation-Current Rate Method LQ7 On January 1, 2008, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2008 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2008 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2008 Direct exchange rates for Swiss franc are: Required: A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. B. Prepare a schedule to verify the translation adjustment. Foreign Currency Remeasurement-Temporal Method 108 Use the information provided in Exercise 13-4. Required: A. Convert (remeasure) the financial statements of the foreign subsidiary using the temporal method of translation. B. Prepare a schedule to verify the translation gain or loss