When accounting for self-contained foreign subsidiaries,the parent company uses which one of the following methods for the translation of its financial statements into dollars?

A) Present value rate
B) Historical rate
C) Future value rate
D) Current rate

Self-Contained Foreign Subsidiaries

Independent overseas entities of a parent company that manage their operations, accounting, and reporting locally.

Current Rate

The present value of foreign currencies in terms of domestic currency, used in converting foreign transactions to the domestic currency denomination in accounting.

Translation

In accounting, refers to the process of converting financial statements from one currency into another, often for consolidation purposes.