Which reporting method uses stable currency exchange rates?

Constant Currency Reporting is designed to utilize stable currency exchange rates over time to provide a clearer understanding of a company's financial performance, without the fluctuations that can arise from varying exchange rates. This method allows for the comparison of financial data across different periods as if the currency exchange rates had remained unchanged, eliminating the distortions caused by currency fluctuations.

By keeping the exchange rates constant, this reporting method allows stakeholders to better analyze the true performance of a business, focusing on internal factors rather than external factors like currency volatility. Consequently, it provides a more accurate reflection of growth or decline in revenue, expenses, and profitability, highlighting the operational effectiveness of the business over time.

The other reporting methods utilize varying degrees of exchange rate adjustments, which can lead to different financial interpretations and analyses depending on the current market conditions at the time of reporting.