AASB 121 Requires Which of the Following to Be Disclosed

question 9

Multiple Choice

AASB 121 requires which of the following to be disclosed in the financial reports?

• A) Any change in functional currency and reason for change.
• B) The net exchange differences recognised in OCI and accumulated in a separate component of equity.
• C) The amount of exchange differences recognised in the profit or loss for the period other than those that relate to financial instruments measured at fair value through profit or loss.
• D) All of the above.

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Definitions:

Compounded Monthly

Compounded monthly refers to the process where the interest earned on an investment is added to the principal sum each month, causing the principal amount to grow at an increasing rate.

Effective Rate

The actual interest rate an individual pays or earns on a loan or investment, taking into account the effects of compounding.

Compounded Semiannually

Refers to the process of calculating and adding interest to the principal balance of an investment or loan twice a year.

Strip Bond

A fixed-income security derived from the separation of the coupons from the principal of a bond, which are then sold separately as zero-coupon bonds.