Can any one tell me what is the different between translation and re-measurement method :?:

As I know re-measurement, we need to convert the non-monetary (e.g. PPE, Investment, Share Capital, Inventories, Accum. profit etc) using historical cost (rate). So what about for translation method :?:

Thanks. :D

Dear Lee,

Translation mean when a subsidiary's functional or operational currency is different from presentation currencyof its parents, it's financial statements for the purpose of consolidation must be translated into the parent's currency.

Income Statement should be translated as INCOME at the rate of each transaction and EXPENSES on an average rate of the year.

Balance Sheet should be translated as Assets, Liabilities and Share Capital at the closing date(i.e. rate on balance sheet date).

I hope this helps!

Regards,

Muhammad Amir.