Which measures is unaffected by the translation under the current rate and temporal?

[Jones473]

Which of the following measures is unaffected by the choice between translation under the current rate method and remeasurement under the temporal method?
Taxes are converted at the same rate (average) under both. Equity under the temporal method is a mixed rate whereas under the current rate method it is at the current rate. COGS under the temporal method is at the historical rate and under the current rate method it is at the average rate.
I thought equity would be translated using historical rates for both?

 

[JGus66]

The FX translation G/L under the current rate method (CTA) is reported on the balance sheet under equity. That’s why it’s a mixed rate.

 

[lunacy]

Under the current rate method, all assets and liabilties are at current rates so equity (which is equal to A - L) is also translated at the same (current) rate, meaning that equity taken as a whole is at the current rate.
Under the temporal method, different components of assets and liabilities are translated at different rates so equity is at a mixed rate.
Hope this helps.

 

[Flashback]

^Well. That is not absolutely correct.There is one fact and seems it may be many errors here. So..

lunacy wrote:
Under the current rate method, all assets and liabilties are at current rates so equity (which is equal to A - L) is also translated at the same (current) rate, meaning that equity taken as a whole is at the current rate.

Since paid in capital by establishing firm or additonal capital paid by last recapitalization is historical value and is a non-monetary item, it should be calculated by historical exchange rate under both methods. This historical rate means exch. rate when subsidiary was established unless there is mentioned in question there were several recapitalizations in the past period which means there will be several historical rates.
Also at temporal method only (since in CR this issue may be only applied on paid in capital), watch out on historical various events mentioned in the question for calculating correspodent historical rates for various BS entries. Example, asset purchases, inventory purchasing etc.