local currency and functional currency

In practice exam book 1, exam 3 morning session, question 54, I am a little confused on the answer provided by Schweser Question in brief summary: Del is local currency, Rho is functional currency of the independent subsidiary, USD is the reporting currency. What method should we use to translate from receivables in Del to Rho? The answer from the book: temporal However, since functional currency is diff from reporting currency, shouldn’t we use all-current? Or, since the question is not asking about translating from Rho to USD, rather, it is asking about translating from Del to Rho, then functional currency is the same as reporting currency (Rho), thus temporal is needed?? Anyone has any ideas?? =)

remember that if all 3 are different, you use temporarl to go from local to functional and all current to go from functional to reporting. translating receivables from del (local) to rho (functional) is the part of this process that is temporal method.

thanks alot the show NY… really appreciate it!

Del–>Rho (Reporting currency: Rho, local currency: Del) functional is also rho hence, temporal.