The translation of all of a foreign subsidiary's current assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate; that is, the rate in effect at the time the asset was acquired or the liability incurred.
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In accounting, a convention where all current assets and liabilities in a foreign currency are translated to the domestic currency at the current exchange rate while all long-term assets and liabilities are translated at the exchange rate in effect when each asset or liability was acquired. See also: Temporal Method.
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current/noncurrent methodsee FOREIGN CURRENCY TRANSLATION.
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