Please find the attached assignment. There needs to be at least two paragraphs per bullet point and reference(s) provided.

"Translation of Foreign Currency Financial Statements" Analyze the fundamental differences between re-measurement and the translation approach when preparing a foreign currency financial statement for a company of your choice. Next, determine one to two (1-2) situations when re-measurement is most appropriate. Provide support for your position. 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. Provide rationale for your selection. The fundamental difference between re-measurement and translation approach when preparing a foreign currency financial statement can be based on these two major issues (a) Which type of method should be used and (b) Where should the resulting translation adjustment be provided in the consolidated financial statements. However, when preparing consolidated foreign currency financial statements that are prepared by foreign operations, it is important that it must be translated into the parent company's reporting department. The following situations determines when remeasurement is appropriate: The U.S. dollar is the functional or currency being used The foreign subsidiary operates in a highly inflationary country. The major issue underlying the temporal method is that the translation process should result a translated U.S. dollar financial statements as if the foreign subsidiary's transactions had actually been carried out using U.S. dollars. The major issue underlying the current rate method is that the entire foreign investment is exposed to foreign exchange risk. Therefore all assets and liabilities are translated at the current exchange rate. Balance sheet exposure under this concept is equal to the net investment. This problem is avoided by translating at the historical exchange rate as is done under the temporal method. One reason for mandating the use of the temporal method is that it avoids the disappearance of the plant problem that exists when the current rate method is utilized. Moreover, under the current rate method, fixed assets are translated at current exchange rates. The fundamental difference between re-measurement and translation approach when preparing a foreign currency financial statement can be based on these two major issues Which type of method should be used and Where should the resulting translation adjustment be provided in the consolidated financial statements? However, when preparing consolidated foreign currency financial statements that are prepared by foreign operations, it is important that it must be translated into the parent company's reporting department. (My position) The following situations determines when re-measurement is appropriate: The U.S. dollar is the functional or currency being used The foreign subsidiary operates in a highly inflationary country. The major issue underlying the temporal method is that the translation process should result a translated U.S. dollar financial statements as if the foreign subsidiary's transactions had actually been carried out using U.S. dollars. Another, major issue underlying the current rate method is that the entire foreign investment is exposed to foreign exchange risk. Therefore all assets and liabilities are translated at the current exchange rate. Balance sheet exposure under this concept is equal to the net investment. This problem is avoided by translating at the historical exchange rate as is done under the temporal method. One reason for mandating the use of the temporal method is that it avoids the disappearance of the plant problem that exists when the current rate method is utilized. Moreover, under the current rate method, fixed assets are translated at current exchange rates. (My Position) Reference: Spencer, S., Richards, G. (2012). Article from journalofaccountancy.com. Three common currency-adjustment pitfalls. Retrieved from http://www.journalofaccountancy.com/issues/2012/feb/20113891.html on November 20, 2015