B IS CORRECT. IFRS AND US GAAP DIFFER SUBSTANTIALLY IN THEIR APPROA...

7. - CFA 2018 LEVEL 2 FRA QUESTION BANK MULTINATIONAL OPERATIONS QBANK
CFA 2018 LEVEL 2 FRA QUESTION BANK MULTINATIONAL OPERATIONS QBANK
7. B is correct. IFRS and US GAAP differ substantially in their approach to translating the foreign currency financial statements of a subsidiary in a hyperinflationary economy. US GAAP requires that the financial statements be translated using the temporal method. IFRS require financial statements to be first restated for inflation and then inflation adjusted financial statements be translated at the current exchange rate.