American Bankers Association Exam CTFA Topic 3 Question 65 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 65
Topic #: 3

Monetary items and non-monetary items carried at market value are translated into the reporting currency at the rate of exchange in effect on the balance sheet date under:

ADependency method

BEquity method

CTemporal method

DCash inflow/outflow method

Show Suggested Answer

Suggested Answer: C

by Yoko at May 09, 2024, 06:53 PM

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Cecilia

7 months ago

Okay, you guys convinced me. Temporal method it is, then!

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Jina

8 months ago

I see why you say Temporal method. That makes sense for exchange rate translation on the balance sheet date.

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Na

8 months ago

I think User2 is right. The Temporal method fits the definition of translating monetary and non-monetary items at market value.

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Cecilia

8 months ago

Really? I was leaning towards the Dependency method.

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Theodora

8 months ago

Yeah, it’s a bit confusing. But I think the correct answer is option C, the Temporal method.

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Jina

9 months ago

The question seems tricky. What do you guys think?

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