Current rate method

[Kirtika]

What rate do we use for converting the depreciation expense under current rate method.I understand that under temporal method we use the same rate as used to convert the PPE ( historical rate ) but am confused with depereciation under current rate .Is it the Average rate ???

 

[cgy5478]

Under CR, everything on your income statement is translated using avg rate.

 

[shivgan3]

Cr makes life easy, everything in IS is on avg rates, that is one reason you can haev the adjuetment here and hence the adjustment in CR method goes in BS and not in IS, whereas in temporal the adj is in IS.
The idea is that you want to be more close to real numbers int he current rate and you are taking hisotrical values int he temproal rate.