The current rate method is used in translation exposure management to restate —in the currency in which a company presents its financial statements— all assets, liabilities, revenues, expenses, gains and losses that are denominated in foreign currencies. With the current rate method, all balance sheet and income statement items are translated at the current exchange rate. For this reason, the current rate method is the simplest. The other main methods are the current/noncurrent method and the monetary/nonmonetary method. It should be noted that, no matter what translation account exposure management method is used, the resulting FX gains and losses are paper only, and rarely affect cash flows.