Lennon Ltd Has Two Foreign Operations Based in Japan

question 35

Multiple Choice

Lennon Ltd has two foreign operations based in Japan. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015:

Exchange rate information is:

The translation from Japanese Yen to Australian dollars resulted to the following balances (rounded to the nearest ¥000) :

Which of the following translation processes were applied to Yoko Ltd and Ono Ltd, respectively, for the year ended 30 June 2015?

• A) Functional currency; Presentation currency;
• B) Functional currency; Functional currency;
• C) Presentation currency; Functional currency;
• D) Presentation currency; Presentation currency;
• E) None of the given answers.

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