streep inc. is a u.s.-based multinational firm with a subsidiary in switzerland. last week, streep created its periodic financial statements, and the subsidiary had sfr 50,000 worth of inventory on its balance sheet. streep translated the value of inventory using the spot exchange rate at that time of $0.8153 / sfr and recorded that value on its consolidated balance sheet. however, this week the exchange rate changed dramatically to $0.8925 / sfr. the subsidiary still has the same amount of inventory (valued at sfr 50,000).