This article examines the impact of the adoption of FASB Statement No. 52 on foreign currency reporting for multinational companies during the optional three-year adoption period (1981–1983). The results of the study suggest that early adoption of SFAS No. 52 for many companies was motivated by a favorable impact on income and earnings per share but that the relative rankings of the companies before and after SFAS No. 52 were not significantly affected.
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References
1.
Financial Accounting Standards Board, Statement of Financial Accounting Standards No. 8, Accounting for the Translation of Foreign Currency Transactions and Foreign Currency Financial Statements (Stamford, Conn.: FASB, 1975).
