如下

问题如下：

Yu’s determination regarding Transaction 2 should be based on the currency of the:

选项：

A.

loan

B.

bank

C.

borrower

解释：

C is correct.

The currency of Ngcorp as the borrowing foreign subsidiary, relative to that of Ambleu, determines Ambleu’s choice of translation method for Transaction 2. Because Ngcorp’s functional currency is the Bindiar franc and Ambleu’s presentation currency is the Norvoltian krone, the current rate method rather than the temporal method should be used. Regardless of the currency in which the loan is denominated, the loan is first recorded in Ngcorp’s financial statements. Then, Ngcorp’s financial statements, which include the bank loan, are translated into Ambleu’s consolidated financial statements.

解析：子公司functional currency和母公司货币不同，并表时应该使用current rate method进行转换。判断使用什么translation方法，是基于子公司的functional currency和母公司是否相同，不是基于子公司具体的某一笔交易。子公司的报表用什么方法转换，其所有的业务就是用该方法转换。