definitions Temporal (and monetary/nonmonetary) method

Temporal (and monetary/nonmonetary) method

A translation accounting method (such as FAS #8 in the United States) that translates monetary assets and liabilities at current exchange rates and all other balance sheet accounts at historical exchange rates. Under this currency transaction method, the choice of exchange rate depends on the underlying method of valuation. Assets and liabilities valued at historical cost (market) are translated at the historical rate (current rare).