The Fischer Black Method of Evaluating Accounting Alternatives Applied to Currency Translation Methods

Authors

  • Paul Holt Texas A&M University, Kingsville

Keywords:

Fischer Black, Accounting alternatives, Currency translation,

Abstract

There is a massive foreign currency translation literature, but virtually no empirical research exists that tests alternative translation methods against normative criteria. This study compares three translation methods using the
Black method of evaluating accounting alternatives. The translation method that performed best in this normative test was a price parity method, a method that has never been required or allowed under U.S. GAAP.

Author Biography

Paul Holt, Texas A&M University, Kingsville

Paul Holt is a professor of accounting at Texas A&M University, Kingsville. He received his Ph.D. in international accounting from Oklahoma State University. His current research focuses on descriptive and normative studies of foreign currency translation methodologies. He has published in Advances in Business Research, American Journal of Economics and Business Administration, Journal of Theoretical Accounting Research, Southwest Business and Economics Journal, Accounting Forum, and Journal of Accounting and Finance Research.

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Published

2012-12-05

Issue

Vol. 3 No. 1 (2012)

Section

ABR Journal Articles

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