Temporal method (See Chapter 6 of the Vernimmen)The temporal method consists in translating monetary items at the closing rate; non-monetary items at the exchange rate at the date to which the historical cost or valuation pertains; revenues and charges on the income statement theoretically at the exchange rate prevailing on the transaction date. In practice, however, they are usually translated at an average exchange rate for the period. Under the temporal method, the difference between the net income on the balance sheet and that on the income statement is recorded on the income statement under foreign exchange gains and losses. This method is used when the subsidiary is not independent of its parent company, because its operations are an integral part of another company.
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Definitions of terms begining with the same letter as "Temporal method" :
TMT TSR Take and pay contract Take or pay contract Takeover Takeover bid Tangible fixed asset Tapping the reserves Tax loss carrybacks Tax loss carryforwards Tax shield Technical analysis Technical dilution Temporal method Temporary differences Tender offer Term sheet Terminal value The bottom-up approach is also called the stock-picking approach. Theory of markets in equilibrium Theta Time deposit Time diversification Time value Time value of money Timing differences Timing problem Tobin’s Q Toogle notes Top-down approach Total breakeven Total debt service Total return swap Total shareholder return, TSR Tracking stock Trade buyer Trade payables Trade receivables Trade-off model Trading profit Trailing ratio Transaction multiples Transaction multiples method Transfer Transfer of assets Translation Translation risk Treasury Treasury method Treasury shares Treeing Trend analysis Trust preference shares Turnover – assets Turnover – liabilities