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What happens when the foreign currency weakens relative to parent’s presentation currency?

October 16, 2016
Temporal Method Net Monetary Liability Temporal Method Net Monetary Asset Current Rate Method
Revenues ↓ Revenues ↓ Revenues ↓
Assets ↓ Assets ↓ Assets ↓
Liabilities ↓ Liabilities ↓ Liabilities ↓
Net Income ↑ Net Income ↓ Net Income ↓
Shareholder’s Equity Translation Gain ↑ Shareholder’s Equity Translation Loss ↓ Shareholder’s Equity Negative translation adjustment ↓
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