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Current Rate Method |
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Current rate method The translation of all foreign currency balance sheet and income statement items at the current exchange rate. Current Rate Method On a balance sheet, a way to recognize all expenses and revenues made in a foreign currency by translating them according to their spot exchange rate. The current rate method, while technically correct, makes financial statements more difficult to compile and evaluate because of the fluctuations in exchange rates that inevitably occur. See also: Constant currencies, Foreign currency translation. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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