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Restate for inflation and translate using the current rate

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Reference no: EM131711273

When it comes to translating the financial statements of entities in highly inflationary countries, which of the following approaches makes more sense and why?

1st option - Remeasure using the temporal method, even though the functional currency is the local currency for operation purposes.

2nd option - Restate for inflation and translate using the current rate method.

Reference no: EM131711273

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