FASB Statement No. 52 provides guidelines for the translation of
foreign currency financial statements by U.S.-based multinational
corporations. The appropriate translation method and disposition of
translation adjustment depends upon the functional currency of the
foreign entity. Discuss FASB Statement No. 52 and within your
discussion, explain what is the functional currency and discuss the
indicators listed for SFAS 52 that are to be used in determining an
entity’s functional currency. In your opinion, does Statement No.
52 lead to smaller fluctuations in operating income and much
smaller fluctuations in net income in response to changes in
exchange rate. Explain why or why not.Thoroughly explain your
thoughts regarding why or why not.