What exchange rate is used to translate the income statement?
To translate the income statement from one currency to another, the company should use the average exchange rate. Most companies convert the income statement on a monthly basis and use the average exchange rate for that month.
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What exchange rate is used to translate assets and liabilities?
When a company must translate financial results from one foreign currency to another, for assets you would use the spot (current) rate. For example, if you were translating accounts receivable on June 30th from British pounds to US Dollars, you would use the spot rate on June 30th.
What exchange rate is used to translate assets and liabilities?
When a company must translate financial results from one foreign currency to another, for assets you would use the spot (current) rate. For example, if you were translating accounts receivable on June 30th from British pounds to US Dollars, you would use the spot rate on June 30th.
