Under the Translation Method Required by AASB 121,the Approach to Translating

question 8

Multiple Choice

Under the translation method required by AASB 121,the approach to translating a foreign operation's accounts includes:

• A) Translating post-acquisition changes in equity at the exchange rate current at the date of the change.
• B) Translating non-monetary assets at the spot exchange rate at the date of the purchase transaction.
• C) Translating revenue and expense items at the exchange rate current at reporting date where the revenues and expense transactions have been evenly distributed over the period.
• D) Translating proposed distributions from retained profits at the exchange rate current when the distributions are completed in cash.
• E) All of the given answers.

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Definitions:

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A major mountain range in western North America, extending from the northernmost part of British Columbia, in Canada, to New Mexico, in the southwestern United States.

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Organized excursions or adventure trips, often in rugged terrain, using jeeps as the primary mode of transport.

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Costs in the manufacturing process that vary with the level of production output, such as utilities or raw materials.

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The predetermined cost of manufacturing a product or providing a service, used for budgeting and performance evaluation.