When Translating into the Presentation Currency the Translation Difference Is

question 4

Multiple Choice

When translating into the presentation currency the translation difference is recognised:

• A) in retained earnings.
• B) in profit or loss.
• C) as a separate component of equity.
• D) as an asset or liability, depending on whether it is a debit or credit balance.

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Definitions:

Destroy

To cause something to cease to exist or to put an end to something by damaging it beyond repair or recovery.

Third-party Claimant

An individual or entity that claims rights or seeks remedies under a contract to which they are not a direct party.

Bailee

A bailee is an individual or entity temporarily entrusted with possession of personal property for a specific purpose, but without ownership rights.

Bailor

The owner of bailed property; the one who delivers personal property to another to be held in bailment.